I don't think the house comparison is a good example - a house in Palo Alto can only be utilised in Palo Alto. A remote worker could work from anywhere and produce the same output, regardless of location.
Pay levels based on location seem like a good way for companies to "save" money by providing a convenient excuse to pay someone less for the same work.
Pay levels based on location seem like a good way for companies to "save" money by providing a convenient excuse to pay someone less for the same work.