From where I live I could work in Paris with the same commute time than I do by working in Luxembourg, but I get a better paycheck.
Renting a 2 bedroom costs 700€ a month where I live, in Paris it would cost 2 to 3 times this.
I don't get the "there's not enough engineering available", this is just not true, reality is that people will earn a lot more in London, Luxembourg, Switzerland, so they chose that.