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That’s not how labor markets work. Amazon engineers in Boston and Seattle will certainly be paid more on average than engineers from Pittsburgh or Atlanta.



Why not? I mean, if they can't get people to work for less wages, they have to offer higher ones.


There is less competition for talent in smaller markets like Pittsburg, so they get paid less. Also an engineer in Pittsburg, for example, would usually be okay getting paid less, because housing is cheaper by a factor of 5 than Silicon Valley and his or her overall cost of living will be much lower.

It is supply and demand. People in highly competitive labor markets like Silicon Valley or Seattle will get a geographic differential. People in less competitive markets will get paid, but also enjoy a lower cost of living.

If you live in one of those less competitive areas and asked to be paid like someone in Silicon Valley, you better be rock star, nine times out of ten it will not happen.




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