Expensive and low-price places to live : regional price levels and the agglomeration wage differential in Western Germany
Abstract"Recently, there has been a renewed interest in the agglomeration wage differential. One of the open research question is whether wage differences between large cities and the rural country are due to unobserved differences in regional price levels. In this paper information on regional price levels for western German regions is used to assess this wage differential. Since for many regions price information is not available. Multiple Imputation is used to generate completed data sets. It can be shown that this strategy is more reliable than simply using predictions of regression analysis. The results obtained show that the agglomeration wage differential in Germany is smaller than in the US, and that only a minor part of it can be explained by differences in prices." (Author's abstract, IAB-Doku) ((en))
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Bibliographic InfoPaper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 200715.
Length: 28 pages
Date of creation: 05 Apr 2007
Date of revision:
Publication status: published in: The Annals of Regional Science, Vol. 43, No. 1 (2009), p. 71-88
Lohnunterschied; regionale Disparität; Preisniveau; Westdeutschland; Bundesrepublik Deutschland;
Find related papers by JEL classification:
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-09 (All new papers)
- NEP-GEO-2007-04-09 (Economic Geography)
- NEP-URE-2007-04-09 (Urban & Real Estate Economics)
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