Pay for their skills, not where they live. Where do people live sometimes is not an option. If you really want to hire someone, does it matter if they live in _________?
Would outstanding skilled person takes a pay cut for some reasons they need to live in cheaper location? Tom Hanks gets pay the same if he goes to india to film.
But hey! Someone live in India would get pay too much. For sure, but if their skills are worth that and delivers that work, does it matter?
Do you want to live in that cheaper location with your high paying salary? Why don’t you move there and stay where you are?