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The Impact of Regional Differences in Prices and Wages on Economic Growth: The United States in 1890

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  • Coelho, Philip R. P.
  • Shepherd, James F.

Abstract

Differences in regional prices and wages are examined for the United States in 1890, together with the relationship between the cost of living and city size, and the determinants of regional industrial growth. Results indicate that regional cost-of-liying differences were sufficiently large so that money wages cannot be used for purposes of comparing the economic well-being of wage earners across regions. Except for the South, money wages and the cost of living were positively correlated. The relative differences in money wages, however, were greater; consequently real wages in high wage-price areas were generally higher.

Suggested Citation

  • Coelho, Philip R. P. & Shepherd, James F., 1979. "The Impact of Regional Differences in Prices and Wages on Economic Growth: The United States in 1890," The Journal of Economic History, Cambridge University Press, vol. 39(1), pages 69-85, March.
    • Handle: RePEc:cup:jechis:v:39:y:1979:i:01:p:69-85_09
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    Cited by:

    1. Eckard, E. Woodrow, 2007. "Retail price concentration, transaction costs, and price flexibility circa 1900," Explorations in Economic History, Elsevier, vol. 44(1), pages 131-153, January.
    2. Joshua L. Rosenbloom, 1996. "The Extent of the Labor Market in the United States, 1850-1914," NBER Historical Working Papers 0078, National Bureau of Economic Research, Inc.
    3. Michael R. Haines, 1989. "A State and Local Consumer Price Index for the United States in 1890," NBER Historical Working Papers 0002, National Bureau of Economic Research, Inc.

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