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Low-cost place usually means a poor country - more risks, bad education/schools (so you have to pay premium for private...), unemployed family members, unemployed parents and other relatives, etc...

So think twice before penalizing people from poor countries.

I'm not entirely sure about the "usually", it may or may not be true. But to offer a different view here, I'm from Sweden and cost of living in Sweden is extremely low. If you have an apartment or house outside the capital it costs next to nothing, we have no health insurance costs, no education costs, food is not particularly expensive compared to the rest of the industrialized world and so people usually feel it's OK to offer a lower salary in Sweden on that argument.

You pay a lot of taxes for education, healthcare, etc... you should seek larger gross salary to end up with more disposable income on your end.

And yes, not everyone lives in rural areas or small towns. Stockholm is one of the most expensive places out there.

Depends on city, try finding a cheap apartment in Stockholm, not to mention car and gas costs. Etc.

"Extremely" low...

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