Regional Wage Convergence and Divergence: Adjusting Wages for Cost-of-Living Differences
An examination of the divergence of U.S. regional fortunes in the early 1980s, showing that once regional prices are factored in, relative wage rates continue to converge across regions. The trend in regional wage variation is also shown to be attributable to declining differences in labor market valuations of worker attributes, rather than to shifts in the regional composition of the workforce.
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|Note:||Appears in Economic Review: Federal Reserve Bank of Cleveland 30(2): 26-37|
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