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INTERREGIONAL WAGE DIFFERENTIALS: AN EQUILIBRIUM PERSPECTIVE*
Authors:Mark Dickie  Shelby Gerking
Abstract:
ABSTRACT This paper empirically analyzes two competing explanations for observed interregional wage differentials among full-time U.S. workers: (1) differences in the average levels of market valued labor characteristics, and (2) differences in rates of return to the characteristics. Hedonic wage equations are estimated for broad U.S. regions using detailed measures of human capital, work environment, and personal attributes collected by a national random sample mail survey. Statistical tests reveal little tendency for interregional structural shifts in the wage equations estimated, an outcome which rests on the inclusion of important, but seldom measured, wage determining variables.
Keywords:
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