The value of something is in the eye of the beholder. In all our transactions, the price paid for something is between the largest amount the buyer is willing t

The value of something is in the eye of the beholder. In all our transactions, the price paid for something is between the largest amount the buyer is willing to pay and the lowest amount the seller is willing to accept. When people move to a cheaper area, the lowest pay that will give them the exact same happiness level as before the move becomes lower. This presents a new bargaining opportunity. Since the bargaining opportunity was not triggered by the worker becoming more valuable to the company but by the worker choosing to limit their opportunities, it is unsurprising that a new round of bargaining may result in the worker being paid less.