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Interregional Wage Differential Dynamics

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  • Robert S. Goldfarb
  • Anthony M. J. Yezer

Abstract

ABSTRACT The lack of a proper index of regional cost of living differences and of data on total compensation per hour worked has hindered tests of theories of interregional migration and wage convergence. Theory implies that real wage differentials should be smaller for more skilled workers. Tests performed in this paper use this information to form wage‐based indexes of cost of living differences and to test for converegence of real wage differentials in unskilled occupations. The tests use high‐quality data on intal compensation per hour. The estimates of nominal and real wage changes for 1974‐1979 and 1979‐1984 do not substantiate predictions of wage convergence.

Suggested Citation

  • Robert S. Goldfarb & Anthony M. J. Yezer, 1987. "Interregional Wage Differential Dynamics," Papers in Regional Science, Wiley Blackwell, vol. 62(1), pages 45-56, January.
    • Handle: RePEc:bla:presci:v:62:y:1987:i:1:p:45-56
    DOI: 10.1111/j.1435-5597.1987.tb01052.x
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    Cited by:

    1. Ribar, David C., 2001. "The effects of local employment opportunities on youths' work and schooling," Economics of Education Review, Elsevier, vol. 20(4), pages 401-413, August.

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