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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Taxes might be different, even within the same nation there can be different employee tax rates in different locations. Equipment like office space and such can cost different in different places which also factors into the cost of employing someone. But more importantly there are more available work in larger cities so employees can more easily demand higher pay. And the higher cost of living kind of forces them to negotiate higher pay then workers in smaller cities or rural areas.
But there are actually people who “game” the system by getting high paying jobs in a large city which promises the ability to work 100% remotely or the ability to relocate, and then move out of the city while still keeping their high pay.
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