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Components of city-size wage differentials, 1973-1988

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  • Patricia E. Beeson
  • Erica L. Groshen

Abstract

An exploration of why workers in large cities are more highly paid than their rural counterparts. The authors decompose city-size wage differentials into the portion due to worker traits and the portion due to intercity differences in wage structures and find that differences in worker-attribute prices account for most of the disparity.

Suggested Citation

  • Patricia E. Beeson & Erica L. Groshen, 1991. "Components of city-size wage differentials, 1973-1988," Economic Review, Federal Reserve Bank of Cleveland, vol. 27(Q IV), pages 10-24.
    • Handle: RePEc:fip:fedcer:y:1991:i:qiv:p:10-24:n:v.27no.4
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    References listed on IDEAS

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    1. Beeson, Patricia E., 1990. "Sources of the decline of manufacturing in large metropolitan areas," Journal of Urban Economics, Elsevier, vol. 28(1), pages 71-86, July.
    2. Lynn E. Browne, 1989. "Shifting regional fortunes: the wheel turns," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 27-40.
    3. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    4. Hanushek, Eric A, 1973. "Regional Differences in the Structure of Earnings," The Review of Economics and Statistics, MIT Press, vol. 55(2), pages 204-213, May.
    5. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    6. Farber, Stephen C & Newman, Robert J, 1987. "Accounting for South/Non-South Real Wage Differentials and for Changes in Those Differentials over Time," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 215-223, May.
    7. Leo Sveikauskas, 1975. "The Productivity of Cities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 89(3), pages 393-413.
    8. Gerking, Shelby D & Weirick, William N, 1983. "Compensating Differences and Interregional Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 483-487, August.
    9. Randall W. Eberts, 1989. "Accounting for the recent divergence in regional wage differentials," Economic Review, Federal Reserve Bank of Cleveland, vol. 25(Q III), pages 14-26.
    10. Sahling, Leonard G & Smith, Sharon P, 1983. "Regional Wage Differentials: Has the South Risen Again?," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 131-135, February.
    11. Cropper, M. L. & Arriaga-Salinas, A. S., 1980. "Inter-city wage differentials and the value of air quality," Journal of Urban Economics, Elsevier, vol. 8(2), pages 236-254, September.
    12. Erica L. Groshen, 1991. "Sources of Intra-Industry Wage Dispersion: How Much Do Employers Matter?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(3), pages 869-884.
    13. Henderson, J. Vernon, 1991. "Urban Development: Theory, Fact, and Illusion," OUP Catalogue, Oxford University Press, number 9780195069020.
    14. Segal, David, 1976. "Are There Returns to Scale in City Size?," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 339-350, August.
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    Cited by:

    1. Jefferson Andronio Ramundo Staduto & Amarildo Hersen, 2011. "Decomposition of labor earnings: an analysis between metropolitan regions and non-metropolitan regions in Brazil," ERSA conference papers ersa10p113, European Regional Science Association.
    2. Dumond, J Michael & Hirsch, Barry T & Macpherson, David A, 1999. "Wage Differentials across Labor Markets and Workers: Does Cost of Living Matter?," Economic Inquiry, Western Economic Association International, vol. 37(4), pages 577-598, October.
    3. Lewis A. Soroka, 1999. "Male-Female Urban Income Distributions in Canada: The Service Sector in a Dependency Model," Urban Studies, Urban Studies Journal Limited, vol. 36(3), pages 563-574, March.

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