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Labor Market Equilibrium and Sun-belt-Frostbelt Earnings Gaps

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  • Michael Podgursky
  • Paul Swaim

Abstract

In this paper, the authors estimate interregional earnings differentials using the May-June matched 1979 Current Population Survey. Several biases that may have been present in earlier studies are corrected by controlling for establishment size and job tenure, and by using a nonmetropolitan cost-of-living deflator for workers not residing in major metropolitan areas. Large and statistically-significant differentials in real earnings across regions are found, including a substantial earnings premium for workers in the expanding "sunbelt" states in the South and West. The authors interpret these gaps as indicating disequilibrium between "sunbelt" and "frostbelt" labor markets.

Suggested Citation

  • Michael Podgursky & Paul Swaim, 1987. "Labor Market Equilibrium and Sun-belt-Frostbelt Earnings Gaps," Eastern Economic Journal, Eastern Economic Association, vol. 13(2), pages 107-113, Apr-Jun.
    • Handle: RePEc:eej:eeconj:v:13:y:1987:i:2:p:107-113
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume13/V13N2P107_113.pdf
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    References listed on IDEAS

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