Location-based pay

• #capitalism
• #work

“Most of the time, we think higher wages have to be a sign of higher productivity,” said Edward Glaeser, a Harvard University economist and co-author of “Survival of the City: Living and Thriving in an Age of Isolation.”

Glaeser said location-based pay is traditionally seen as a reflection of the productivity gains of agglomeration — the physical clustering of industries like finance in New York City or technology in Silicon Valley.

“It’s not about short-term stuff,” he said, acknowledging research that shows remote workers maintain the same level of output. “It’s about long-term stuff. It’s about the learning that doesn't happen when we’re remote. It’s about the new relationships that don’t form. It’s about the new ideas that are left on the floor.”