I agree that many companies should pay more competitive salaries , but doesn't this disproportionately hurt people in higher cost of living areas? Everyone else gets a pay increase, the company's bottom line tightens, and higher cost of living area folks get nothing for it. I live in an area with a relatively low cost of living, and the only way I would consider moving elsewhere would be if the salary were increased proportionately to that higher cost of living such that I could maintain a similar level of comfort (beach+not negative degree temperatures ~ a couple $K).