Expensive and low-price places to live : regional price levels and the agglomeration wage differential in Western Germany
"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))
|Date of creation:||05 Apr 2007|
|Publication status:||published in: The Annals of Regional Science, Vol. 43, No. 1 (2009), p. 71-88|
|Contact details of provider:|| Postal: Regensburger Str. 104, D-90327 Nürnberg|
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- Yankow, Jeffrey J., 2006. "Why do cities pay more? An empirical examination of some competing theories of the urban wage premium," Journal of Urban Economics, Elsevier, vol. 60(2), pages 139-161, September.
- Michael Roos, 2006.
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- Jens Suedekum, 2006. "Agglomeration And Regional Costs Of Living," Journal of Regional Science, Wiley Blackwell, vol. 46(3), pages 529-543.
- Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May. Full references (including those not matched with items on IDEAS)
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