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Testing for Factor Price Equality in the Presence of Unobserved Factor Quality Diferences

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Author Info
Andrew Bernard
Stephen Redding
Peter Schott

Additional information is available for the following registered author(s):

Abstract

We develop a method for identifying departures from relative factor price equality across regions that is valid under general assumptions about production, markets and factors. Application of this method to the United States reveals substantial and increasing deviations in relative skilled wages across labor markets in both 1972 and 1992. These deviations vary systematically with labor markets .industry structure both in the cross section and over time.

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File URL: http://www.ces.census.gov/index.php/ces/cespapers?down_key=101871
File Format: application/pdf
File Function: First version, 2009
Download Restriction: no

Publisher Info
Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 09-22.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 38 pages
Date of creation: Aug 2009
Date of revision:
Handle: RePEc:cen:wpaper:09-22

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Web page: http://www.ces.census.gov

For technical questions regarding this item, or to correct its listing, contact: (Cheryl Grim).

Related research
Keywords: Factor Price Equality; Regional Wages; Neoclassical Trade Theory; Labor Market Areas;

Find related papers by JEL classification:
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods

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This page was last updated on 2009-11-13.

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