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State Patterns of Occupational Earnings: Implications for Long-Term Growth

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  • Roger F. Riefler

    (University of Nebraska, Lincoln)

Abstract

This article focuses on the role of real and money wages in a state’s growth (macro) and location (micro) prospects. Data from the Bureau of Labor Statistics Occupational Employment Statistics (OES) survey for 2000 were used first to indirectly estimate state cost-of-living (COL) indices. These COL indices are the major contribution of this article. The methodology employed, in combination with the current 6-month reporting cycle for the OES, should eventually allow the computation of accurate inflation indices for states and regions. By applying these COL indices to OES- reported money wages by occupation, estimates of real wages are derived. Likely growth scenarios, both in terms of total employment and for certain key occupations, are investigated under two assumptions: first, that workers positively respond, by entry and migration, to those areas having above-average real wages, and second, that capital flows respond to below-average money wages.

Suggested Citation

  • Roger F. Riefler, 2007. "State Patterns of Occupational Earnings: Implications for Long-Term Growth," Economic Development Quarterly, , vol. 21(1), pages 34-48, February.
    • Handle: RePEc:sae:ecdequ:v:21:y:2007:i:1:p:34-48
    DOI: 10.1177/0891242406294927
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    References listed on IDEAS

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    1. Gerking, Shelby D & Weirick, William N, 1983. "Compensating Differences and Interregional Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 483-487, August.
    2. Koo, Jahyeong & Phillips, Keith R & Sigalla, Fiona D, 2000. "Measuring Regional Cost of Living," Journal of Business & Economic Statistics, American Statistical Association, vol. 18(1), pages 127-136, January.
    3. Gerald A. Carlino, 1982. "Manufacturing Agglomeration Economies As Returns To Scale: A Production Function Approach," Papers in Regional Science, Wiley Blackwell, vol. 50(1), pages 95-108, January.
    4. Calem, Paul S. & Carlino, Gerald A., 1991. "Urban agglomeration economies in the presence of technical change," Journal of Urban Economics, Elsevier, vol. 29(1), pages 82-95, January.
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    Cited by:

    1. Richard V. Adkisson & Eduardo Saucedo, 2010. "Merchandise Exports and Job Quality, Evidence From the States," Economic Development Quarterly, , vol. 24(3), pages 231-242, August.

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