Wednesday, September 24, 2008

Cleveland or Boston?

Suppose you have two job offers upon graduating from Marietta College. One offer is from a company in Cleveland for $45,000 per year. The other offer is from a company in Boston for $60,000. Assuming that all other aspects of the two jobs are identical and that you are motivated solely by monetary rewards, which job offer will you select and why? (Show any necessary calculations as a part of your answer.)

Congratulations to Alissa Bamberger for being the first to recognize that the lower nominal job offer in Cleveland is the more lucrative of the two when adjusted for inflation (see her answer in the comments section).

1 comment:

Alissa Bambarger said...

I believe Cleveland would be the better choice because the two cities have different costs of living. Based on salary.com, Boston has a 38.2% higher cost of living than that of Cleveland. So basically $45,000 in Cleveland would be the equivalent of only about $37,000 in Boston. (Calcuations: .382 x 60000 = 22,920 then, 60,000 - 22,920 = 37080 shows how much money this would be in Cleveland, Oh.)