Possible Sources of Wage Divergence among Metropolitan Areas of the United States

Much of the literature on sub-national income convergence relates to states and regions. This paper focuses upon metropolitan areas as the germane geographical units for studying income convergence. Evidence of metropolitan wage divergence, the opposite of convergence, is presented. A theoretical ba...

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Bibliographic Details
Published in:Urban studies (Edinburgh, Scotland) Scotland), 2005-08, Vol.42 (9), p.1609-1620
Main Author: Drennan, Matthew P.
Format: Article
Language:English
Subjects:
Cities
Coefficients
Data analysis
Economic geography
Economic growth
Economic models
Empirical evidence
Empirical research
Endogenous growth
Gini coefficient
Growth models
Human capital
Income Distribution
Income inequality
Metropolitan Areas
Real wages
Regression analysis
U.S.A
United States of America
Urban development
Urban economics
Wage differentials
Wages
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Summary:Much of the literature on sub-national income convergence relates to states and regions. This paper focuses upon metropolitan areas as the germane geographical units for studying income convergence. Evidence of metropolitan wage divergence, the opposite of convergence, is presented. A theoretical basis for wage divergence is found in endogenous growth models and in two-sector trade models. Cross-section regression equations are estimated in which the level and the growth of metropolitan wages are related to variables that the empirical evidence and the theory suggest may be important sources of wage divergence.
ISSN:0042-0980
1360-063X
DOI:10.1080/00420980500185538