Epistemic Status: This seems obvious to me, but my Google Fu did not bring up any previous conversations about it. Forgive me if this has already been discussed in depth somewhere, and I just missed it.
Effective Altruists should move to cities with a high cost of living.
I have seen discussions about migrating in very specific instances (e.g. Should doctors move to a different country? Should engineers move to Silicon Valley?), but I don't think I've seen people ask whether it’s good in general to migrate to a city with high cost of living.
Donate More.
If your salary was constant, it would obviously be better to pay lower rent. However, cities with a high cost of living tend to have similarly high salaries (with exceptions). A job that pays $50k in Houston would pay $111k in Manhattan, if the company gave cost of living adjustments. If all your money is going towards your living expenses then this wouldn't be important, but if you are donating a set percentage of your income (or paying off student debt, or saving for retirement), this doubles the amount you give (or pay off, or save). Even if you’re not donating a set percentage of your income, if your cost of living is less than most others in your job, then you will still end up ahead.
Be Green.
If global warming is something you care about, another factor is that big cities are significantly greener than elsewhere. Despite our ideas of big cities being pollution spewers, the high population density (a bunch of people live in a single apartment building, instead of a single family sprawled out in a large suburban home) and availability of public transportation make cities have significantly less greenhouse gas per capita. It seems like the cities with the highest cost of living do the best, which makes sense because there is a strong causal correlation between high rents, people living in small spaces, people living close together, there being good public transportation or walking availability, etc. In the US, New York and San Francisco do noticeably better than other cities.
Greenhouse Gas Emissions Per Capita for select US cities (source: World Bank):
- New York City: 7.9
- San Francisco: 10.1
- Seattle: 14.1 <-- known for "green" culture
- Menlo Park: 16.4
- US Overall Average: 23.6
Build a Movement.
If building the effective altruism movement is something you care about, then you will probably also have a better opportunity to do that in a larger city, even if that requires paying higher costs of living. For instance, the two largest cities for effective altruism, San Francisco and Oxford both have high costs of living but effective altruists there can reap some social and other benefits.
So if you can work remotely or your salary is fixed, it’s probably good to be where living costs are low but for most effective altruists, it seems like the opposite might be the case.
1. Do most jobs actually account for cost of living in their salary offers, so that we can offer this as generalized advice (though of course there may be exceptions)?
2. Are the cost of living salary adjustments not as big as the actual cost of living differences? So that the job might pay slightly more in a big city, but not a full adjustment more?
3. Are there other factors I'm not thinking of which would make this NOT be good advice?
Acknowledgements: I'd like to thank Ryan Carey and Lincoln Quirk for editing, adding, proof reading, discussing, and being generally helpful. Thanks!
I think it's probably easier to directly find which cities have the highest salaries for your line of work, than to research which have the highest cost-of-living and hope that this correlates with a high salary for your line of work.
I don't know how the cost-of-living calculator works, but I suspect if it gives that large of a difference it's taking a multiplier (e.g. cost of living in Manhattan is 2x cost of living in Houston). If the market is efficient, cost-of-living differences should be additive, and hence not nearly that large. This is substantiated by this completely uncontrolled correlational study in a news article (sorry) in which the difference between cities looks more constant than proportional (e.g. if median starting pay differs by 5k, then so does median mid-career pay).
The other large thing this neglects is remote jobs, which give you the best of both worlds--salary adjusted for high CoL, but low expenses for yourself. One engineer at my company lives in Montana. He makes a Silicon Valley salary and the mortgage on his three-bedroom house on multiple acres is around what I'm paying for half a bedroom in Berkeley.
This seems right to me. While I like the original post, I think it makes the point seem more counterintuitive than it needs to be. Compare with:
Should you move to a city where you can earn more? Sadly cost of living will typically increase, but for people who are donating or saving a lot, this will be outweighed by the additional earnings.