eli5 why does pay depend on where the job is located?

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Two people working the exact same job, in the same nation, but differently compensated because of where the live just sounds off to me.

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Anonymous 0 Comments

Nice 4000 sqft home with some yard in Minneapolis Minnesota – $500-850k
Same 4000 sqft home in San Francisco – $2million+

Market dictates all – if prices are higher in a market because of high demand, then a company that wants to work in that market has to pay workers enough that they can live in that market.

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