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Wage Differentials Across Labor Markets and Workers: Does Cost of Living Matter?

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Author Info
DuMond J.M.
Hisch, B.T.
Macpherson, D.A.

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Abstract

Standard estimates of wage differentials rarely control for interarea differences in cost of living.his study develops an index for 182 metropolitan areas, comrising 65 percent of the US labour force. Wage equations are estimated using Current Population Survey earnings files for 1985093, based on nominal wages, wages fully adjusted for measured cost of living, and an approximation of "real" wages based on a simple regression adjustment for price level differences.

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Publisher Info
Paper provided by Department of Economics, Florida State University in its series Working Papers with number 1996_08_01.

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Length: 23 pages
Date of creation: 1996
Date of revision:
Handle: RePEc:fsu:wpaper:1996_08_01

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Related research
Keywords: WAGES ; LABOUR MARKET ; COST OF LIVING;

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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  2. José António Cabral Vieira & João Pedro Almeida Couto & Maria Teresa Borges Tiago, 2005. "Inter-regional Wage Dispersion in Portugal," ERSA conference papers ersa05p160, European Regional Science Association. [Downloadable!]
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  3. Daniel F. Heuermann, 2008. "Human Capital Externalities in Western Germany," Discussion Papers 200805, Institute of Labour Law and Industrial Relations in the European Community (IAAEG). [Downloadable!]
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  4. David C Maré & Wai Kin Choy, 2001. "Regional Labour Market Adjustment and the Movements of People: A Review," Treasury Working Paper Series 01/08, New Zealand Treasury. [Downloadable!]
  5. C.N. Teulings & P.A. Gautier, 2002. "Search and the City," Tinbergen Institute Discussion Papers 02-061/3, Tinbergen Institute. [Downloadable!]
  6. Hirsch, Barry, 2008. "Wage Gaps Large and Small," IZA Discussion Papers 3375, Institute for the Study of Labor (IZA). [Downloadable!]
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  7. Michael Beenstock & Daniel Felsenstein, 2005. "Regional Heterogenity and Conditional Convergence," ERSA conference papers ersa05p307, European Regional Science Association. [Downloadable!]
  8. Jolliffe, Dean, 2006. "The Cost of Living and the Geographic Distribution of Poverty," Economic Research Report 7254, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  9. Hirsch, Barry T. & Schumacher, Edward J., 2004. "Classic Monopsony or New Monopsony? Searching for Evidence in Nursing Labor Markets," IZA Discussion Papers 1154, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Morten Marott Larsen, 2003. "Regional wage differentials - does distance matter?," ERSA conference papers ersa03p418, European Regional Science Association. [Downloadable!]
  11. Aleksey Oshchepkov, 2007. "Are Interregional Wage Differentials in Russia Compensative?," Discussion Papers of DIW Berlin 750, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  12. Stevans, Lonnie, 2007. "The Effect of Right-to-Work Laws on Business and Economic Conditions: A Multivariate Approach," MPRA Paper 5638, University Library of Munich, Germany. [Downloadable!]
  13. John P. Formby & Gary Hoover, 2002. "Salary Determinants of Entry-Level Academic Economists and the Characteristics of Those Hired on the Tenure Track," Eastern Economic Journal, Eastern Economic Association, vol. 28(4), pages 509-522, Fall. [Downloadable!]
  14. Edward J. Schumacher & Barry T. Hirsch, . "Compensating Differentials and Unmeasured Ability in the Labor Market For Nurses: Why Do Hospitals Pay More?," Working Papers 9604, East Carolina University, Department of Economics. [Downloadable!]
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