Why living in a big city for a higher salary may not pay off

Researchers at the University of California, Berkeley and the U.S. Census Bureau released a report this month titled, “Location, location, location,” which digs into whether higher salaries in major urban centres are worth moving to the big city for.

The report concluded that “housing costs consume more than 100 per cent of the nominal earnings gain that a typical worker obtains from moving to a larger or higher-earnings commuter zone.”

Economist and McDonald Laurier Institute Senior Fellow Linda Nazareth says corporations may be tempted to reduce pay for employees who live in a lower-cost jurisdiction, but the tight labour market may hinder their ability to do that as they compete for talent.

Global’s Anne Gaviola has the details.

For more info, please go to https://globalnews.ca/news/8268824/big-city-salary-canada-housing/

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