I have heard the compensation is a big drag for tech jobs in CA. But I don't really understand why that is. If tech hiring is so brutal, why wouldn't the wages

I have heard the compensation is a big drag for tech jobs in CA. But I don't really understand why that is. If tech hiring is so brutal, why wouldn't the wages be more in line with what their neighbors just south in the USA are paying? After all, if there is a brain drain and tech works from CA are leaving (in part due to comp, presumably), then why not pay more?