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If remote work really takes off, it won't be long until most employers adjust salaries down to each employee's local cost of labor. Why pay someone a Bay Area or NYC salary when they work in rural Montana, when they could pay a rural Montana salary to get someone who works in rural Montana?

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> Why pay someone a Bay Area or NYC salary when they work in rural Montana, when they could pay a rural Montana salary to get someone who works in rural Montana?

Because you can't get anyone in rural Montana who is capable of getting a job paying Bay Area or NYC salaroies to accept that offer. Adjustment will result in meeting somewhere in the middle but whether that's 25% or 95% of Bay Area salaries is an open question.

Remote salaries might end up being somewhere between rural Montana and Bay Area. There's no reason to assume there's a huge supply of software engineers in the US which would make all remote salaries to be in the low-end.

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