Salaries are not often a function of an individual’s alternative opportunities. For example, salaries are extremely durable even in economic downturns. A person

Salaries are not often a function of an individual’s alternative opportunities. For example, salaries are extremely durable even in economic downturns. A person might have children and become “locked in” to a job because of sudden family financial obligations, decreasing their ability to job search, pass interviews, or take a risky move. Yet that doesn’t lead their employer to suddenly cut their salary because an external life factor such as family status (which is no different in kind from geo location) changes the landscape of opportunities they could consider.