Factor Price Equality and the Economies of the United States

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Factor Price Equality and the Economies of the United States

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Andrew B. Bernard
Stephen Redding
Peter K. Schott

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Abstract

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

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0696.

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Date of creation: Jul 2005
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Handle: RePEc:cep:cepdps:dp0696

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Paper
- Bernard, Andrew & Redding, Stephen J & Schott, Peter, 2005. "Factor Price Equality and the Economies of the United States," CEPR Discussion Papers 5111, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2001. "Factor Price Equality and the Economies of the United States," NBER Working Papers 8068, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
- Andrew Bernard & Stephen Redding & Peter Schott, 2005. "Factor Price Equality and the Economies of the United States," Working Papers 05-21, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]

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

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-12-01 (All new papers)
NEP-GEO-2005-12-01 (Economic Geography)
NEP-INT-2005-12-01 (International Trade)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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Other versions:
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Other versions:
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Other versions:
- Davis, D.R. & Weinstein, D.E., 1999. "An Account of Global Factor Trade," Working Papers 435, Research Seminar in International Economics, University of Michigan.
- Donald R. Davis & David E. Weinstein, 1998. "An Account of Global Factor Trade," Harvard Institute of Economic Research Working Papers 1849, Harvard - Institute of Economic Research.
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Courant, Paul N & Deardorff, Alan V, 1992. "International Trade with Lumpy Countries," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 198-210, February. [Downloadable!] (restricted)
Other versions:
- Courant, P.N. & Deardorff, A.V., 1989. "International Trade With Lumpy Countries," Working Papers 242, Research Seminar in International Economics, University of Michigan.
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Other versions:
- Deardorff, A.V., 1991. "The Possibility of Factor Price Equalization, Revisited," Working Papers 277, Research Seminar in International Economics, University of Michigan.
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