The Importance of Local Fiscal Conditions in Analyzing Local Labor Markets
AbstractA new test of the compensating wage differential model is proposed. The logic behind Roback's model showing how differences in nonproduced amenities may be reflected in intercity wage differentials is extended to the case of differences in local fiscal conditions, represented by tax rates and publicly produced services. Results show that differences in local tax rates and services provisions do generate compensating wage differentials across cities. The effects of a particularly large set of taxes and effective services output measures are examined.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2040.
Date of creation: Oct 1986
Date of revision:
Publication status: published as Journal of Political Economy, vol.97, no. 5, October 1989, pp.1208-1231.
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Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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Other versions of this item:
- Gyourko, Joseph & Tracy, Joseph, 1989. "The Importance of Local Fiscal Conditions in Analyzing Local Labor Markets," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 97(5), pages 1208-31, October.
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- Duncan, Greg J. & Holmlund, Bertil, 1983.
"Was Adam Smith Right, After All? Another Test of the Theory of Compensating Wage Differentials,"
Working Paper Series, Research Institute of Industrial Economics
93, Research Institute of Industrial Economics.
- Duncan, Greg J & Holmlund, Bertil, 1983. "Was Adam Smith Right after All? Another Test of the Theory of Compensating Wage Differentials," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 1(4), pages 366-79, October.
- John Abowd & Orley Ashenfelter, 1980.
"Anticipated Unemployment, Temporary Layoffs and Compensating Wage Differentials,"
Working Papers, Princeton University, Department of Economics, Industrial Relations Section.
517, Princeton University, Department of Economics, Industrial Relations Section..
- John M. Abowd & Orley C. Ashenfelter, 1981. "Anticipated Unemployment, Temporary Layoffs, and Compensating Wage Differentials," NBER Chapters, National Bureau of Economic Research, Inc, in: Studies in Labor Markets, pages 141-186 National Bureau of Economic Research, Inc.
- Brown, Charles, 1980. "Equalizing Differences in the Labor Market," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 94(1), pages 113-34, February.
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