Why should employers pay for that? It's the employee's choice where they live, not the company's. If the company bought some company housing and had employees live there, then your idea would make sense. But why should someone who chooses to live 2 hours away get paid more than someone who lives 5 minutes away?
However, I think there are some good arguments to be made about where the employers choose to locate their offices.
However, I think there are some good arguments to be made about where the employers choose to locate their offices.