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You get to choose where you live. If you choose to live somewhere with a high cost of living, why does that mean you get paid more? Why is Sally worth $150k a y

You get to choose where you live. If you choose to live somewhere with a high cost of living, why does that mean you get paid more? Why is Sally worth $150k a year in SF but Bob, who’s identical in work performance, only gets $100k because he happens to live somewhere else? Your lifestyle choices shouldn’t effect your salary.

yongli 7y ago
I agree with this sentiment. Even having children is a personal choice, which one may choose to forgo in the interest of saving money for example. On the opposite end of the spectrum, you wouldn't expect to pay someone more simply because they choose to have 5 children and their family living costs are higher.
ghaff 7y ago
Because in that hypothetical situation, the company can hire those individuals at $150K and $100K respectively. Sally won't accept $100K given alternatives in the Bay Area and her unwillingness to move to $MIDWEST_CITY. And to Bob--who is very happy in his less crowded and expensive location--$100K looks pretty good, especially relative to local alternatives. "Shouldn't" has very little to do with salary offers.
- buboard 7y ago
  So clearly sally is not worth being hired, all things bein equal. It wouldn’t make sense for the company
  - ghaff 7y ago
    If all things are absolutely equal other than Salary, the company only needs one person, and Bob will take the offer for $50K less--then, yes, they'll probably hire Bob. By virtue of having an expensive lifestyle--and, presumably, more local options--Sally has priced herself out of remote work for companies that genuinely don't care where employees are located. Of course, real life is more complicated than that and all things are rarely equal. ADDED: GitLab actually explicitly states: "All things being equal, we will hire people in lower cost markets vs. higher cost markets."
    - marvin 7y ago
      Sally might not have a more expensive lifestyle than Bob, but might be aware that a similar company is willing to pay $150k. And therefore not accept the offer of $100k.
      - UserIsUnused 7y ago
        Not a remote one playing by "everyone region has same pay-rate". Because if there is another one and paying more, then Bob, would also apply there.
- stanmancan 7y ago
  I understand why it happens, I was replying to a post that says “everyone should earn the same”, which I disagree with.

yongli 7y ago

I agree with this sentiment. Even having children is a personal choice, which one may choose to forgo in the interest of saving money for example. On the opposite end of the spectrum, you wouldn't expect to pay someone more simply because they choose to have 5 children and their family living costs are higher.

ghaff 7y ago

Because in that hypothetical situation, the company can hire those individuals at $150K and $100K respectively. Sally won't accept $100K given alternatives in the Bay Area and her unwillingness to move to $MIDWEST_CITY. And to Bob--who is very happy in his less crowded and expensive location--$100K looks pretty good, especially relative to local alternatives. "Shouldn't" has very little to do with salary offers.

buboard 7y ago
So clearly sally is not worth being hired, all things bein equal. It wouldn’t make sense for the company
- ghaff 7y ago
  If all things are absolutely equal other than Salary, the company only needs one person, and Bob will take the offer for $50K less--then, yes, they'll probably hire Bob. By virtue of having an expensive lifestyle--and, presumably, more local options--Sally has priced herself out of remote work for companies that genuinely don't care where employees are located. Of course, real life is more complicated than that and all things are rarely equal. ADDED: GitLab actually explicitly states: "All things being equal, we will hire people in lower cost markets vs. higher cost markets."
  - marvin 7y ago
    Sally might not have a more expensive lifestyle than Bob, but might be aware that a similar company is willing to pay $150k. And therefore not accept the offer of $100k.
    - UserIsUnused 7y ago
      Not a remote one playing by "everyone region has same pay-rate". Because if there is another one and paying more, then Bob, would also apply there.
stanmancan 7y ago
I understand why it happens, I was replying to a post that says “everyone should earn the same”, which I disagree with.