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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9 Answers

Anonymous 0 Comments

Cost of living varies by area depending mainly on:

1)the income of the people already in that area and

2) the ratio of demand for housing in that area/city vs supply.

Pay is sometimes dependent on cost of living of where you’re working.
Pay is also commonly dependent on how remote the work is since: remote work attracts less workers ( such as oil rig paltforms at sea)

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