[dragonwriter]

> Your salary is only partially based on "the value created by employee" - most of it is the market forces of supply and demand.

Value created is the driver for the demand side. Yes, the supply side will differ regionally, but for a service that isn't differentiated by the region it comes from, that doesn't matter—the law of one price should, in a competitive remote hiring market, prevail equalizing wages for remote work. Firms trying to normalize location based pay are trying to short-circuit the law of one price—or at least slow the development of equilibrium by introducing friction—by way of creating artificial market segmentation, which can only work so long as the market is not competitive because of either a monopsony or an explicit or tacit agreement not to compete for labor.

The public discussion that passes for transparency and explaining to prospective workers isn't just about that, it's most signalling to other employers to get them onboard.

[lotsofpulp]

> Firms trying to normalize location based pay are trying to short-circuit the law of one price—or at least slow the development of equilibrium by introducing friction

Considering the firms lowering the prices are currently paying far above the median in global wages, they’re doing the exact opposite of short circuiting the “law of one price”.

The whole reason for paying higher than median wage was the friction of being geographically located in high demand areas.