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Location based pay is generally set based on _cost of labor_, not cost of living.
by semiquaver 6y ago
Location based pay is generally set based on _cost of labor_, not cost of living.
- emteycz 6y agoAnd cost of labor is generally at least the cost of living.
- semiquaver 6y agoSure, but they vary by a lot. For example, engineering salaries in Canadian cities are roughly 60% of US cities with comparable cost of living. I see people talking about “cost of living” being an unfair criteria to set salaries and I agree! But that’s a strawman: almost no employer uses that to set salaries, they use a much more sensible number: the estimated cost to hire a replacement in the same area.
- emteycz 6y agoThat's exactly the point - it's not good for people when the market rate goes too close to or below cost of living. 60% of cities having the same pay are irrelevant when there's the rest of the world, which is generally poorer.