[bgirard]

One factor is less opportunities also means less competing offers. Having solid competing offers can boost your initial offer by another 33%.

On the next job switch you can now use that higher salary and get another set of competing offers. Since it's not an option in Canada there's not a lot of upward pressure on compensation.

In my limited experience the top tier employers are very strict with their regional market assessment. When I started to negotiate above that range with a FANG Canada they converted my offer to SF Bay Area. The difference has everything to do with market assessments and nothing to do with cost of living.