Wage Differentials Across Labor Markets and Workers: Does Cost of Living Matter?
AbstractStandard 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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Bibliographic InfoPaper provided by Department of Economics, Florida State University in its series Working Papers with number 1996_08_01.
Length: 23 pages
Date of creation: 1996
Date of revision:
Other versions of this item:
- Dumond, J Michael & Hirsch, Barry T & Macpherson, David A, 1999. "Wage Differentials across Labor Markets and Workers: Does Cost of Living Matter?," Economic Inquiry, Western Economic Association International, vol. 37(4), pages 577-98, October.
- 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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