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Regional Wage Differentials, Fluctuations in Labor Demand, and Migration

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  • Ronald J. Krumm

    (Department of Economics and Center for Urban Studies, University of Chicago, Chicago, IL 60637 USA)

Abstract

The structure of regional wage patterns over time is examined in the context of long-run equilibrium nominal wage differentials. Changes in regional demand for labor and the resulting short-run wage variation are analyzed in the context of the expected duration of the demand change. Cross sections of time series data on wages in selected manufacturing industries are utilized to control for systematic spatial differences in wage behavior and year-specific business cycle influences. Empirical results indicate important variations in wage patterns as a result of differences in the expected duration of labor demand and supply changes. The findings also suggest that migration has an important effect on regional wage patterns.

Suggested Citation

  • Ronald J. Krumm, 1983. "Regional Wage Differentials, Fluctuations in Labor Demand, and Migration," International Regional Science Review, , vol. 8(1), pages 23-45, June.
    • Handle: RePEc:sae:inrsre:v:8:y:1983:i:1:p:23-45
    DOI: 10.1177/016001768300800102
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    References listed on IDEAS

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    1. Rosen, Sherwin & Nadiri, M Ishaq, 1974. "A Disequilibrium Model of Demand for Factors of Production," American Economic Review, American Economic Association, vol. 64(2), pages 264-270, May.
    2. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    3. Rosen, Sherwin & Nadiri, M Ishaq, 1974. "A Disequilibrium Model of Demand for Factors of Production," American Economic Review, American Economic Association, vol. 64(2), pages 264-270, May.
    4. Graves, Philip E., 1976. "A reexamination of migration, economic opportunity, and the quality of life," MPRA Paper 19918, University Library of Munich, Germany.
    5. Lucas, Robert E, Jr & Rapping, Leonard A, 1969. "Real Wages, Employment, and Inflation," Journal of Political Economy, University of Chicago Press, vol. 77(5), pages 721-754, Sept./Oct.
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