Regardless of fairness and cost of market I think it's not something beneficial for the companies when it comes to finding and keeping talent. I live in Spain,

Regardless of fairness and cost of market I think it's not something beneficial for the companies when it comes to finding and keeping talent. I live in Spain, and I'm in the same timezone as Germany, now let's imagine I'm percentile 99 when it comes to talent and an American company wants to hire me. Because I live in the middle in Spain they offer me 75k euros a year, if I were in Germany I would get 110k instead. Now my current company pays me 70k and I'm happy where I am, I'm definitely not changing jobs. However if I was offered the 110k I would seriously consider moving because it's a lot more. So instead of paying me the 110k they end up paying 110k to a worse candidate in Germany. Not only they pay the same to a worse candidate, if I were making 110k I would be kidnapped at the company because nobody else would pay that much here.