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A Methodology for Estimating Returns to Skills for Canadian Provinces and U.S. States

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  • Gary L. Hunt
  • Richard E. Mueller

Abstract

Differences in both regional skill prices and skill mix can explain interregional variations in wage distributions. We control for interregional differences in skill mix that permit us to compute key parameters of regional wage distributions including regional returns to skills. In addition to setting forth the methods in detail, we also present estimates for 48 U.S. states and 10 Canadian provinces. For both males and females, we find that regional mean wages (with controls for skills mix) in the U.S. and Canada are similar, but that the returns to skills are systematically higher in the U.S.

Suggested Citation

  • Gary L. Hunt & Richard E. Mueller, 2002. "A Methodology for Estimating Returns to Skills for Canadian Provinces and U.S. States," Journal of Regional Science, Wiley Blackwell, vol. 42(1), pages 127-143, February.
  • Handle: RePEc:bla:jregsc:v:42:y:2002:i:1:p:127-143
    DOI: 10.1111/1467-9787.00253
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    Cited by:

    1. Plantinga, Andrew J. & Détang-Dessendre, Cécile & Hunt, Gary L. & Piguet, Virginie, 2013. "Housing prices and inter-urban migration," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 296-306.
    2. Helena Marques & Hugh Metcalf, 2003. "Extending the EU Single Market Eastwards: Sectoral Trade and Real Wage Effects," Discussion Paper Series 2003_10, Department of Economics, Loughborough University, revised Oct 2003.
    3. Helena Marques & Hugh Metcalf, 2006. "Ending Restrictions To Migration From The New Eu Member Countries: Sectoral Trade And Real Wage Effects," Contemporary Economic Policy, Western Economic Association International, vol. 24(2), pages 287-299, April.
    4. Helena Marques, 2005. "The skilled u-shaped Europe: is it really and on which side does it stand?," Applied Economics, Taylor & Francis Journals, vol. 37(19), pages 2205-2220.
    5. Ian G. Cahill & Michael Gager, 2014. "Explaining Canadian Regional Wage Relativities," The Review of Regional Studies, Southern Regional Science Association, vol. 44(2), pages 125-152, Summer.
    6. Eva Lajtkepová, 2020. "Distribution of Wages in the Regions of the Czech Republic," ACTA VSFS, University of Finance and Administration, vol. 14(2), pages 123-136.
    7. Melanie Arntz, 2010. "What Attracts Human Capital? Understanding the Skill Composition of Interregional Job Matches in Germany," Regional Studies, Taylor & Francis Journals, vol. 44(4), pages 423-441.
    8. Helena Marques & Hugh Metcalf, 2009. "Manufacturing Wages In The Enlarged Eu: The Role Of Neighbour‐Country Effects," Manchester School, University of Manchester, vol. 77(1), pages 65-81, January.
    9. Helena Marques & Hugh Metcalf, 2003. "Wage Gradients in an Enlarged EU," Discussion Paper Series 2003_13, Department of Economics, Loughborough University, revised Dec 2003.
    10. Helena Marques, 2010. "Market Access and Manufacturing Wages: Evidence for the Enlarged EU," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 17(1), pages 204-210, May.
    11. Hunt, Gary L. & Mueller, Richard E., 2010. "Returns to Skill, Tax Policy, and North American Migration by Skill Level: Canada and the United States 1995 - 2001," CLSSRN working papers clsrn_admin-2010-11, Vancouver School of Economics, revised 26 Mar 2010.

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