This is particularly interesting for me because I once worked on a team that was split across two different states. Everyone one on the team was paid roughly the same. When we had remote meetings, it seemed clear that those in the state with a much lower cost of living were having lot more fun at work. Exact same duties, but for them, it was a much better job.
The company I work for is 100% distributed across the US and they pay the same salary regardless of where you live. I'm in Los Angeles, CA so it doesn't go nearly as far as it does for my colleagues in Texas or Louisiana.