As first-year salaries go up on both coasts, firms in Texas are resisting the pressure to raise. Though some non-Texas-based firms applied have applied the NY/CA market rate of $160,000 to their Texas offices, large Texas firms are staying put. The resistance may come from the fact that most firms just went through salary increases in 2006, and TX firms do not feel the need to raise them again so soon. Moreover, these firms know that because the cost of living is lower in Texas than in CA or NY, they remain competitive even if they don’t match East and West Coast salaries. Many top law students want to remain or return to Texas for just that reason. However, if any firm in the Lone Star state breaks down and decides to make the raise, it is likely that more will follow.

Source: www.nylawyer.com