I strongly disagree with the first point. The high salaries in the Bay Area and NYC filter out jobs where the marginal value of the labor is low. This also filters out low margin, low productivity businesses. This in aggregate also filters for higher skill employees on average. As a result, the chances of you working at a highly profitable (or fast growing) company is higher. The chances of you working with (and being mentored by) high skill colleagues is higher. Working at a growth potential or high margin company where you are a profit center, working with/collaborating with/being mentored by other (on average) high skill workers means you have a much higher earnings cap, even factoring for COL.