For me, as an employer, I use the information for two purposes.

First, it gives me an idea of what the applicant is expecting. If my budget is 
$45K, $55K, $65K or whatever, why waste the candidate's time or my time 
interviewing someone who is currently making $80K to $100K+? It doesn't matter 
the cost of living adjustment, very few programmers would take a 20-60% cut in 
salary even if the cost of living is 50% cheaper.

Second, it gives a better indication as to how much work they really did for a 
company. 3 years @ $40000 per year or $4000 per year is easier to quantify than 
3 year by itself. For example, my family owns business and I can add the 
following to my resume: CIO Fanie International, 30+ years. It looks great on a 
resume, calling the company you can easily confirm. But what it does not state 
is that I do this on the side and I just get a small commission of a few 
hundred bucks a month for web orders.

Lastly, I only use this as a very small portion of a much bigger criteria 
(except when the salary history tells me there is no chance in hell that this 
person will accept a salary within our budget).


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