Paraphrase: Local labor markets vary in pay levels, depending on industrial composition. Communities in which a large proportion of organizations are in high-profit industries tend to be high paying communities and often have a higher cost of living. Communities with a high proportion of organizations in low-profit industries tend to have lower pay. Sometimes communities experience short-run increases in pay levels because labor demand increases compared to labor supply; or there is a decrease in pay levels because of an increase in labor supply without a proportional increase in demand