why does a job in the city pay more then a job in a town for a government job like a teacher?

Question

I assume cost of living in a city being higher though higher living costs but how does the school get more money to pay them then the teacher doing the same thing out in a town does the government give schools more money to schools in the city to pay them more just for them living in a city?

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Answer 1

City governments typically get MUCH higher tax revenue because cities have higher population (more people paying taxes mean more taxes get paid) and property taxes are generally higher. That covers the how cities get the money to pay higher salaries but not the *why*. The *why* is because residents of cities are generally more productive, experience higher cost of living and have more opportunities to find employment elsewhere(increasing the competition on you to pay better).