Remote Work And The US Salary Geography Gap

remote work salary geography gap

Remote work narrows the salary “geography gap” in the US IT market.

During the pandemic, businesses adapted to the rise of remote work. And after a couple of years, employees got used to more flexibility and better work-life balance.

In addition, most people moved away from big cities to settle in more affordable locations working remotely. As a result, remote work decreases the salary “geography gap” in the US job market.

According to a Protocol study, remote work is narrowing the salary gap, especially in the IT industry: “For senior software engineers, the pay gap between the most expensive US cities and the least expensive shrank by two-thirds between 2019 and 2021, according to data from the compensation data provider Pave. By the third quarter of last year, the gap between Tier 1 salaries and Tier 3 salaries had narrowed from 18.1 percent to just 5.9 percent.”

Recent data from Payscale reached the same conclusion. For example, salaries in Dallas and Minneapolis are becoming more competitive and attractive for tech talent. 

The pandemic changed people’s habits on multiple fronts. And the job market is adapting to new priorities and expectations. As a result, remote work decreases the salary “geography gap” in different industries, opening new opportunities for employers and employees alike. 

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