My preferred argument is that high labor costs increases supply which <i>reduces</i> the total cost of labor.<p>For example, in a city I need one DBA which costs me $100k. In the country I need <i>two</i> DBAs at $60k each, because if one leaves I'm not confident I can get another of sufficient skill before the business falls apart.<p>This applies less to larger businesses, which have internal economies of scale and so don't need to rely on the outside market as much. It also doesn't apply to those reliant on lower skilled labor which has a higher supply by default.