[tharne]

I don't think it's a matter of "should", it's a question of what an employee is willing to accept and what a company is willing to pay.

It's been my experience that if you don't offer higher salaries to folks living in high cost areas, they simply won't come work for you.

My guess is that over time as remote work becomes more common, the cost of living differentials between places (at least in the US) will start to flatten, though it may take quite some time.