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Industry localisation and earnings inequality: Evidence from U.S. manufacturing

  • Christopher H. Wheeler

While the productivity gains associated with the geographic concentration of industry (i.e., localisation) are by now well-documented, little work has considered how those gains are distributed across individual workers. This article offers evidence on the connection between total employment and the relative wage earnings of high- and low-skill workers (i.e., inequality) within two-digit manufacturing industries across the states, and a collection of metropolitan areas in the U.S. between 1970 and 1990. Using measures of overall, between-education-group and residual inequality, I find that wage dispersion falls significantly as industry employment expands. Copyright (c) 2007 the author(s). Journal compilation (c) 2007 RSAI.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1435-5957.2007.00107.x
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Article provided by Wiley Blackwell in its journal Papers in Regional Science.

Volume (Year): 86 (2007)
Issue (Month): 1 (03)
Pages: 77-100

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Handle: RePEc:bla:presci:v:86:y:2007:i:1:p:77-100
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