Compensating Differences and Interregional Wage Differentials

Microdata from the 1976 Panel Study in Income Dynamics are used as evidence concerning the nature of interregional wage differentials in the US. The results indicate that a full-time worker's real wages or earnings do not differ between broadly defined geographic areas of the US. Interregional...

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Bibliographic Details
Published in:The review of economics and statistics 1983-08, Vol.65 (3), p.483-487
Main Authors: Gerking, Shelby D., Weirick, William N.
Format: Article
Language:English
Subjects:
Compensating wage differential
Cost of living
Differentials
Economic theory
Human capital
Labor economics
Labor market
Labor markets
Natural logarithms
Nominal wages
Real wages
Regional
Regression analysis
Studies
Wage differential
Wage theories
Wages
Wages & salaries
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Summary:Microdata from the 1976 Panel Study in Income Dynamics are used as evidence concerning the nature of interregional wage differentials in the US. The results indicate that a full-time worker's real wages or earnings do not differ between broadly defined geographic areas of the US. Interregional differences in real wages were found to be based on different relative endowments of various heterogeneous labor types. These findings, however, conflict with those of previous studies. Comparisons are made with the approaches taken by other investigators.
ISSN:0034-6535
1530-9142
DOI:10.2307/1924194