Because demand is less. The wage is still dictated by supply and demand. The supply is probably less, but the demand for that labor is far less. The demand for an engineer in the midwest is higher than the demand for an engineer in Thailand because there are less time barriers, language barriers, etc.
A house in Palo Alto, CA costs more than the exact same house in Dexter, Michigan. If they were made of the exact same materials on the exact same size of land, you wouldn't expect them to cost the same either.
A house in Palo Alto, CA costs more than the exact same house in Dexter, Michigan. If they were made of the exact same materials on the exact same size of land, you wouldn't expect them to cost the same either.