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Sooner or later, costs would begin to rise in that area, because the infrastructure, healthcare, etc. must be improved (due to population growth). Meanwhile, in
by skeeks 6y ago
Sooner or later, costs would begin to rise in that area, because the infrastructure, healthcare, etc. must be improved (due to population growth). Meanwhile, in the former high living cost area, prices would drop. Unskilled low wage employees would loose their jobs because of decreasing demand. And somewhere in the future, everyone starts recognizing that the tables have turned and people would start moving back. It's an endless game...
And in the case of gitlab, they state an interesting reason: [1]
> Paying the same wage in different regions would lead to: [...]
> - A concentration of team members in low-wage regions, since it is a better deal for them, while we want a geographically diverse team.
[1] https://about.gitlab.com/handbook/total-rewards/compensation/#paying-local-rates https://about.gitlab.com/handbook/total-rewards/compensation...
- lagadu 6y agoWhy is that a bad thing? Expensive areas over time becoming more accessible and vice versa effectively means that no place is permanently off-limits from the less wealthy.
- mewpmewp2 6y agoAnd what is the downside of that? Seems like the col of world would equalize and in general things would become more optimal.
- rumanator 6y ago> Sooner or later, costs would begin to rise in that area, because the infrastructure, healthcare, etc. must be improved (due to population growth). How many towns were forced to upgrade their infrastructure because you moved in? It seems to me you are making up extreme slippery slope-type catastrophical scenarios. Getting back to the real world, I know a few IT workers who had to move to an extremely expensive city when they were hired by FAANGs but since then they were able to move back to their home town while keeping their salary. Could you please explain how your scare story applies to this type of case, which represents most if not practically all cases?
- mrep 6y ago> Sooner or later, costs would begin to rise in that area, because the infrastructure, healthcare, etc. must be improved (due to population growth) I don't see why that is as the extra infrastructure will come with more tax revenue. For example, Dallas-Forth-Worth and the Houston metro populations are the 4th and 5th largest in the US and have each grown a estimated 19% in the past decade [0] and yet their cost of living still sits right at the national average [1, 2]. [0]: https://en.wikipedia.org/wiki/List_of_metropolitan_statistical_areas https://en.wikipedia.org/wiki/List_of_metropolitan_statistic... [1]: https://www.payscale.com/cost-of-living-calculator/Texas-Dallas https://www.payscale.com/cost-of-living-calculator/Texas-Dal... [2]: https://www.payscale.com/cost-of-living-calculator/Texas-Houston https://www.payscale.com/cost-of-living-calculator/Texas-Hou...