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Recent Spatial Growth Dynamics in Wages and Housing Costs: Proximity to Urban Production Externalities and Consumer Amenities

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  • Mark D. Partridge

    () (The Ohio State University)

  • Dan S. Rickman

    () (Oklahoma State University)

  • Kamar Ali

    () (University of Saskatchewan)

  • M. Rose Olfert

    () (University of Saskatchewan)

Abstract

Despite advances in communications and transportation technology remoteness within the United States has been increasingly associat ed with relatively lower economic growth. Using a hedonic pricing approach, this paper assesses the relative importance of proximity to urban consumer amenities and production spillovers in explaining growth differentials in wages and housing costs across the U.S. urban hierarchy. We generally find that productivity disadvantages increased with remoteness from urban agglomeration over time. At the same time, we find remoteness from larger metropolitan areas as increasingly attractive to households. In decomposing these influences on wage growth differentials, we find that the dominant force for lower wage growth in remote nonmetropolitan an d small metropolitan-area counties is increasing relative productivity di sadvantages. Yet, for medium-to-large metropolitan areas, increased attractiveness to households of remoteness from even larger metropolitan areas generally contributed the most to relatively weaker wage growth.

Suggested Citation

  • Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2009. "Recent Spatial Growth Dynamics in Wages and Housing Costs: Proximity to Urban Production Externalities and Consumer Amenities," Economics Working Paper Series 0906, Oklahoma State University, Department of Economics and Legal Studies in Business.
  • Handle: RePEc:okl:wpaper:0906
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    Cited by:

    1. Rickman, Dan S. & Wang, Hongbo, 2016. "Regional Housing Supply Elasticity in China 1999-2013: A Spatial Equilibrium Analysis," MPRA Paper 69157, University Library of Munich, Germany.
    2. Evert J Meijers & Martijn J Burger, 2017. "Stretching the concept of ‘borrowed size’," Urban Studies, Urban Studies Journal Limited, vol. 54(1), pages 269-291, January.
    3. David Martín-Barroso & Juan A. Núñez-Serrano & Francisco J. Velázquez, 2015. "The Effect Of Accessibility On Productivity In Spanish Manufacturing Firms," Journal of Regional Science, Wiley Blackwell, vol. 55(5), pages 708-735, November.
    4. Margaret Olfert & Mark Partridge, 2011. "Creating the Cultural Community: Ethnic Diversity vs. Agglomeration," Spatial Economic Analysis, Taylor & Francis Journals, pages 25-55.
    5. Partridge, Mark D. & Rickman, Dan S., 2012. "Integrating regional economic development analysis and land use economics," MPRA Paper 38291, University Library of Munich, Germany.
    6. David L. Sjoquist & John V. Winters, 2015. "State Merit-Based Financial Aid Programs And College Attainment," Journal of Regional Science, Wiley Blackwell, vol. 55(3), pages 364-390, June.
    7. repec:bla:presci:v:96:y:2017:i::p:s69-s90 is not listed on IDEAS
    8. J. Gimenez-Nadal & Jose Molina, 2014. "Regional unemployment, gender, and time allocation of the unemployed," Review of Economics of the Household, Springer, pages 105-127.
    9. Hongbo Wang & Dan Rickman, 2018. "Regional growth differences in China for 1995–2013: an empirical integrative analysis of their sources," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(1), pages 99-117, January.
    10. C. Lockwood Reynolds & Shawn Rohlin, 2014. "Do Location-Based Tax Incentives Improve Quality Of Life And Quality Of Business Environment?," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 1-32, January.
    11. Jungyul Sohn, 2012. "Does City Location Determine Urban Population Growth? The Case Of Small And Medium Cities In Korea," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 103(3), pages 276-292, July.
    12. Hongbo Wang, 2016. "The Texas economic model, miracle or mirage? A spatial hedonic analysis," The Annals of Regional Science, Springer;Western Regional Science Association, pages 393-417.
    13. Belal Fallah & Mark D. Partridge & Dan S. Rickman, 2014. "Geography and High-Tech Employment Growth in US Counties," Journal of Economic Geography, Oxford University Press, vol. 14(4), pages 683-720.
    14. Yunlong Gong & Peter Boelhouwer & Jan de Haan, 2016. "Interurban house price gradient: Effect of urban hierarchy distance on house prices," Urban Studies, Urban Studies Journal Limited, vol. 53(15), pages 3317-3335, November.
    15. Winters, John V., 2014. "STEM graduates, human capital externalities, and wages in the U.S," Regional Science and Urban Economics, Elsevier, pages 190-198.
    16. Winters, John V., 2014. "The Production and Stock of College Graduates for U.S. States," IZA Discussion Papers 8730, Institute for the Study of Labor (IZA).
    17. Rickman, Dan S. & Wang, Hongbo & Winters, John V., 2015. "Adjusted State Teacher Salaries and the Decision to Teach," IZA Discussion Papers 8984, Institute for the Study of Labor (IZA).
    18. Dan S. Rickman & Shane D. Rickman, 2011. "Population Growth In High‐Amenity Nonmetropolitan Areas: What'S The Prognosis?," Journal of Regional Science, Wiley Blackwell, vol. 51(5), pages 863-879, December.
    19. Dimitrios A Giannias & Eleni Sfakianaki, 2013. "Regional and environmental classifications of the 27 EU countries," Journal of Developing Areas, Tennessee State University, College of Business, vol. 47(2), pages 139-157, July-Dece.
    20. Hongbo Wang, 2016. "The Texas economic model, miracle or mirage? A spatial hedonic analysis," The Annals of Regional Science, Springer;Western Regional Science Association, pages 393-417.
    21. Winters, John V., 2014. "Foreign and Native-Born STEM Graduates and Innovation Intensity in the United States," IZA Discussion Papers 8575, Institute for the Study of Labor (IZA).
    22. Dan S. Rickman & Hongbo Wang, 2017. "US regional population growth 2000–2010: Natural amenities or urban agglomeration?," Papers in Regional Science, Wiley Blackwell, vol. 96, pages 69-90, March.
    23. Dan Rickman & Belal Fallah & Mark Partridge, 2011. "Geographic Determinants of Hi-Tech Employment Growth in U.S. Counties," ERSA conference papers ersa11p518, European Regional Science Association.

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