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Reply to "Employees reveal Google has cut the pay of WFH staff"
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[quote=Anonymous][quote] From the employee perspective, if Person 1 is making a better Product A than Person 2, shouldn't Person 1 be paid better than Person 2? Even if Person 1 lives in Idaho and Person 2 lives in NYC? [/quote] Not quite. You're missing the supply-and-demand issue here. If the employer needs or wants employees who will work in a physical office in NYC, then the supply of those employees is limited to those who live (or are willing to move into) that area. If the same employer is willing to hire remote employees, the supply of those potential employees is much, much higher, since it potentially can include anyone in the world who meets the qualifications for that job. When the person in NYC is competing for the same job as the person in India, wages go down. If an employer can find someone to do similar work for half the pay, then the pay for that job will go down.[/quote]
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