The Importance of Local Fiscal Conditions in Analyzing Local Labor Markets
A 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.
|Date of creation:||Oct 1986|
|Publication status:||published as Journal of Political Economy, vol.97, no. 5, October 1989, pp.1208-1231.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Duncan, Greg J. & Holmlund, Bertil, 1983.
"Was Adam Smith Right, After All? Another Test of the Theory of Compensating Wage Differentials,"
Working Paper Series
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, vol. 1(4), pages 366-379, October.
- Charles Brown, 1980. "Equalizing Differences in the Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 94(1), pages 113-134.
- repec:uwp:jhriss:v:11:y:1976:i:4:p:462-483 is not listed on IDEAS
- John M. Abowd & Orley C. Ashenfelter, 1981.
"Anticipated Unemployment, Temporary Layoffs, and Compensating Wage Differentials,"
in: Studies in Labor Markets, pages 141-170
National Bureau of Economic Research, Inc.
- John M. Abowd & Orley Ashenfelter, 1980. "Anticipated Unemployment, Temporary Layoffs and Compensating Wage Differentials," Working Papers 517, Princeton University, Department of Economics, Industrial Relations Section..
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