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Comment by dragonwriter

My local city, but the data isn't so much mine as data that the US government shares.

Sacramento, CA. Mean Salary (per latest BLS data) [0] for Software Developer, Applications: $107,540; for Web Developer: $78,050

Sacramento, CA Gitlab locality pay index: 0.39+0.25=0.51

Vs.

New York City, same BLS figures [1]: $108,770/$81,430

NYC Gitlab locality pay index: 1.00+0.25=1.25

Sac/NYC Salary Ratio (BLS): 0.989/0.958

Sac/NYC Salary Ratio (Gitlab): 0.512

Fundamentally, the rent index based methodology you are using is, I would guess, giving you below market pay almost everywhere that isn't NYC or San Francisco, assuming that you've hit the market wage for the skills you are targeting in your NYC baseline.

[0] https://www.bls.gov/oes/current/oes_40900.htm#15-0000

[1] https://www.bls.gov/oes/current/oes_35620.htm#15-0000

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