[quiq]

Is compensation really strictly less with a 20% pay cut? I'm from the midwest and I have a hard time wrapping my head around the compensation differences. Google-able "cost of living" calculators give me an 80k range for my midwest city salary, that works out to 35-62% cut.

[sidlls]

The cost of living adjustment doesn't include things like savings rate and is at best an apples-and-oranges comparison for housing. In my target city I could easily buy a house 50% larger than I currently rent: but the schools, parks and such would be worse. Think of it like social classes: to get access to equivalent schools and other county provided services (parks, libraries) I'd have to live a level (or two) above my Bay Area lifestyle, negating a lot of the base COLA adjustment. Also my savings rate would plummet: to save the same amount at typical incomes in my target city I'd have to increase my 401k rate by a factor of 1.5 or more, use more of my post-tax income for diversification, etc.