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Labor markets aren't local when everyone can work from home. That's why this kind of move is absurd. Talent outside the Valley might be willing to take lower pa
by loki49152 6y ago
Labor markets aren't local when everyone can work from home. That's why this kind of move is absurd. Talent outside the Valley might be willing to take lower pay, based on lower cost of living, but just like everything else the price of their labor shouldn't be based on the cost to produce it.
- amscanne 6y agoLabor markets are still local until we have widespread remote working. That’s not the case yet. I’m sure companies remote compensation will become competitive in the all remote market as it evolves, whatever it turns out to look like. I think the word “absurd” is an inappropriate description, which is just the company behaving rationally. > just like everything else the price of their labor shouldn't be based on the cost to produce it This is another misunderstanding. Nothings price is fundamentally based on the cost to produce it — that only happens for commodities in competitive markets. The cost of labor is based on supply & demand. And that’s different today in different places.