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Ppl in low COL definitely make out better than people in high COL
Well there only so much extra they can pay. I know our hr lately has been stressing they don't really use cost of living as much as they use cost of labor (what it costs for talent in the location). this is why people in our NY office don't necessarily make that much more than people in other cities...while they have high col, they have tons and tons of potential candidates (driving down the Cost of labor). So although it probably costs 50% more to live in NYC than my market my peers in NY are only making 10% more.
When the firm moved me from low to high cost I got a 20% pay increase plus a COLA payment of $122k paid out over 2 years.