Re:4% will quit if revealed co-workers earn more money
by zarzavat on Friday November 11, 2022 @07:46AM
(#33560142)
This is all a distinction without a difference. Salaries follow the labor market, which follows the cost of living. The cost of living is different in different places, because of differences in the labor market (demand side) or because of geographical reasons (supply side).
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Re:4% will quit if revealed co-workers earn more money
by mjburgess on Friday November 11, 2022 @08:16AM
(#33560450)
It's not, because "location-based" pay will change if the market price of labour at that location changes. Location is a proxy variable; a distinction which makes all the difference, see for example, Detroit
Re:4% will quit if revealed co-workers earn more money
by spoiler on Friday November 11, 2022 @09:24AM
(#33561140)
Right, okay. That makes more sense now. Thanks!
Re:4% will quit if revealed co-workers earn more money
by robertlagrant on Friday November 11, 2022 @09:12AM
(#33560991)
Salaries don't just (or even) follow the labour market or the cost of living. They are upper bounded by the value an employer assigns a role, and lower bounded by the price an employee is willing to accept to do a role.
Within those two bounds, labour markets can play, but the cost of living going up doesn't automatically make more salary money available.