Remote Work — Definition and What It Means for Your Income
Employment that can be performed from any location, decoupling job location from residence location.
Remote work refers to jobs that can be performed without being physically present at an employer's office. This has grown significantly since 2020 and allows workers to potentially live in lower-cost areas while earning salaries set by higher-cost job markets.
Why it matters
Remote work creates 'salary arbitrage' opportunities — a worker earning a San Francisco tech salary while living in a lower-cost city can experience dramatically improved purchasing power.
Example
A remote worker earning $150,000 (a typical San Francisco tech salary) who relocates to Austin while keeping the same salary gains substantial purchasing power due to lower housing costs and no state income tax.
Related tools
Related terms
Remote Work — FAQ
What is salary arbitrage?
Salary arbitrage refers to maintaining a salary set by a higher-cost labor market while living in a lower-cost area, effectively increasing real purchasing power.