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Wage Rate Specfication in Regional and Interregional Econometric Models

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  • Paul M. Beaumont

    (Department of Economics, Krannert Graduate School of Management, Purdue University, West Lafayette, IN 47907 USA)

Abstract

This paper addresses the issue of wage specification in interregional econometric models. Several shortcomings in commonly used regional wage specifications are demonstrated, and a new inter-regional wage specification is developed. It is based on a wage transmission variable that is simple to construct and that can be applied uniformly to diverse regions. Empirical tests demonstrate the usefulness of this specification.

Suggested Citation

  • Paul M. Beaumont, 1983. "Wage Rate Specfication in Regional and Interregional Econometric Models," International Regional Science Review, , vol. 8(1), pages 75-83, June.
    • Handle: RePEc:sae:inrsre:v:8:y:1983:i:1:p:75-83
    DOI: 10.1177/016001768300800105
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    References listed on IDEAS

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    1. Lawrence R. Klein, 1969. "The Specification Of Regional Econometric Models," Papers in Regional Science, Wiley Blackwell, vol. 23(1), pages 105-116, January.
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    3. Hart, R A & MacKay, D I, 1977. "Wage Inflation, Regional Policy and the Regional Earnings Structure," Economica, London School of Economics and Political Science, vol. 44(175), pages 267-281, August.
    4. Otto Eckstein & Thomas A. Wilson, 1962. "The Determination of Money Wages in American Industry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 76(3), pages 379-414.
    5. Sara Behman, 1964. "Labor Mobility, Increasing Labor Demand, and Money Wage-Rate Increases in United States Manufacturing," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 31(4), pages 253-266.
    6. Mehra, Y P, 1976. "Spillovers in Wage Determination in U.S. Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 300-312, August.
    7. Gerking, Shelby D & Weirick, William N, 1983. "Compensating Differences and Interregional Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 483-487, August.
    8. Brechling, Frank, 1973. "Wage Inflation and the Structure of Regional Unemployment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 5(1), pages 355-379, Part II F.
    9. Glickman, Norman J., 1977. "Econometric Analysis of Regional Systems," Elsevier Monographs, Elsevier, edition 1, number 9780122865503 edited by Mills, Edwin S..
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    Cited by:

    1. James P. Lesage & J. David Reed, 1989. "Interregional Wage Transmission in an Urban Hierarchy: Tests Using Vector Autoregressive Models," International Regional Science Review, , vol. 12(3), pages 305-318, December.

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