REGIONAL WAGE DIFFERENTIALS AND RACE: 1973-1978*

ABSTRACT. The intertemporal structure of regional nominal-wage differentials by race is estimated using panel data from 1973 through 1978. This allows for a more complete analysis of the time pattern of changes in wage differentials, which is not possible from cross-sectional studies. The findings indicate that, in addition to the presence of substantial locational differentials, there was a systematic change in the differentials over time.     

Regional Fertility Differentials and the Effect of Migration: An Analysis of U.S. State-level Data

This paper explores, theoretically and empirically, the influence of interregional migration on regional fertility differentials. Specifically, it tests the hypothesis that regions that are closely linked through migration have, all else held constant, a lower differential in fertility than regions that are relatively isolated from one another. A model linking the fertility differential between two states to migration as well as a number of socioeconomic variables is articulated. The model is tested by means of a randomization procedure using U.S. state-level data for 1980. Results support the hypothesis that an increasing volume of interregional migration tends to lower regional fertility differentials.     

Regional labor markets and the household migration decision

"The current work extends the modeling of the household migration decision to take into account location-specific influences and relates these to regional wage differentials. This allows for more complete analysis of real wage gains or losses associated with migration and inferences regarding the nature of equilibrium or disequilibrium wage differentials between regions." Data are from the Michigan Panel Study of Income Dynamics for the period 1976-1978. "The results indicate systematic and often substantial influences of household location on the nominal wage and on both job and residence mobility. Based on these findings, comparisons of wage growth patterns are made for those changing jobs and region of residence status. Although compared to other households the wage growth of these migrants is on average lower before migration and higher after migration, the analysis provides no support for arguments that nominal regional wage differentials reflect systematic ordering of real wage differentials. This finding suggests that real wage gains are closely tied to the interregional migration decision but are not related to regional nominal wage differentials in a simple fashion."     

MEASURING CONTRIBUTING FACTORS TO INTERREGIONAL AGRICULTURAL LABOR PRODUCTIVITY DIFFERENTIALS: A JOINT PROFIT FORMULATION*

ABSTRACT Using Taylor series approximations of joint profit functions, a methodology is outlined to quantify interregional differentials in the Canadian agriculture sector by region and to quantify the contributing factors to regional labor productivity differences. These contributing factors are output price differentials–both crop and livestock, differentials in “land and buildings” capital deepening, “other” capital deepening, energy prices, other material prices, and efficiency. The joint profit formulation permits the analysis of effects of regional specific output price and output mix differentials.     

Local and regional income differences in Finland in 1989 to 1997 — a GIS approach

Income differentials among the population of Finland began to widen in the latter half of the 1990s, as reflected in a geographical analysis based on 1 × 1 km grid cell data produced by Statistics Finland, where the most densely populated cells are seen to have lower mean income levels than the others, and the spatial differences in income level within the large towns and cities are seen to have increased. The income differentials between grid cells are fairly stable and the majority of the cells can be classified as representing the middle income bracket in terms of incomes subject to state taxation. Accurate geo-referenced data of this kind enable observations to be made concerning income differentials which would remain obscured if only administrative areal units such as local government districts were used.     

The Effects of Case-Mix Reimbursement on Ohio Medicaid Nursing Home Costs

This article examines empirically the effects of the Ohio case-mix reimbursement system on nursing home costs. The results show that case-mix is the single most important factor affecting both direct-care (nursing staff) and total per diem costs. Although other factors, such as bedsize, occupancy rate, ownership status, county per capita income, and the demand for nursing home care, also affeet costs; they have far smaller effects on costs than case-mix. Further, the results show that the cost differentials between for-profit and nonprofit facilities are largely explained by differences in cost response to case-mix and, to a lesser extent, by differences in cost response to bedsize, Medicaid utilization, county per capita income, demand for nursing home beds, and occupancy rate. The for-profit facilities in this study cost significantly less than their nonprofit counterparts.     

Marital instability in the context of dramatic societal change: the case of Kyrgyzstan

ABSTRACT

How do marriages fare during times of dramatic social, political and economic transition? Transitional societies offer a unique context for studying marital instability as they are often buffeted by countervailing forces of modernisation and re-traditionalisation, in addition to socio-economic and political changes. Using detailed and rich data from Kyrgyzstan, the study investigates trends over time in marital instability in response to societal upheavals and gradual secular transformations; ethnic group-specific responses in marital instability; and the role of changing gender regimes in marital instability. The findings reveal an increase in the rate of marital dissolution over time. However, ethnic group-specific differentials remained significant, mirroring the historically shaped relative positioning of the groups in the process of demographic change. The results also highlight gender differentials in the influence of education and employment on marital instability. The findings are discussed within the broader framework of demographic and social changes in transitional Central Asia.     

SOMETIMES CLOSE IS GOOD ENOUGH: THE VALUE OF NEARBY ENVIRONMENTAL AMENITIES*

ABSTRACT An extensive empirical literature exists, showing that variations in region‐specific amenities can account for persistent differences in real wages across regions. However, this literature has considered only amenities in the same location as the household. This paper argues that environmental amenities at some distance from but accessible to urban areas may lead to negative compensating wage differentials. We use a general equilibrium framework and data from the 1995 Current Population Survey to calculate implicit amenity prices based on measures of distance to environmental amenities. Our results suggest that amenities outside the metropolitan area do generate compensating wage differentials, as workers are willing to accept lower wages to live in accessible proximity to “nice” places. This implies that these places provide a positive externality to those communities that find them accessible. The estimated effects are quantitatively important, suggesting that these externalities should be taken into account in policy making.     

THE ECONOMIC LAW OF MARKET AREAS: A FURTHER DISCUSSION*

ABSTRACT. The Economic Law of Market Areas, so named by Fetter, is concerned with the division of a territory between two competing centers. It is argued that this Law can be conveniently examined in terms of six cases, each of which is specified by a combination of differentials in freight rates and prices at the two centers. The locational significance of each case is considered, along with the form and dimensions of the market-area boundary between the two centers. Three of the cases are each shown to subsume a special case. It is further shown that for any case except one, a reversal of the differentials between the two centers, while resulting in a symmetrically-equivalent outcome, requires a different (and usually substantial) respecification of the case.     

REGIONAL WAGE DIFFERENCES IN THE NETHERLANDS: MICRO EVIDENCE ON AGGLOMERATION EXTERNALITIES

Based on micro data on individual workers for the period 2000–2005, we show that wage differentials in the Netherlands are small but present. A large part of these differentials can be attributed to individual characteristics. Remaining effects are partially explained by variations in employment density, with an elasticity of about 4.8 percent, and by Marshall‐Arrow‐Romer externalities, where doubling the local share of a (two‐digit) industry results in a 2.9 percent higher productivity. We also find evidence for small negative effects of competition (Porter externalities) and diversity (Jacobs externalities).     

An equilibrium model of gross migration

ABSTRACT The paper presents and tests a new model of migration which differs significantly from the conventional disequilibrium approach. We show that variations in rates of gross migration across regions are equilibrium responses to variations in levels of amenities, governmental policies, etc. The model is tested using data on the gross migration of whites, 1975-80, together with amenities such as climate and with economic variables such as government services, taxes and unionization. Empirical results suggest that the equilibrium model is more consistent with actual migration patterns than is the conventional disequilibrium approach. We estimate compensating differentials and migration elasticities for these variables.     

THE MARKET VALUE OF ENVIRONMENTAL IMPROVEMENTS IN ALTERNATIVE FISCAL REGIMES*

ABSTRACT Land price differentials have long been used as a proxy for the value of environmental improvements in cost/benefit analysis. Both the empirical and theoretical literatures have largely ignored two important facts, however: Taxes financing local improvements are often distortionary, and amenities which influence property values in turn impact the fiscal budget, and hence the tax rate and final economic burden. Put another way, the economic cost of an improvement is endogenous to both the amenity level and the revenue structure. Extending the story in this direction for a system of open or closed spatial cities, the paper finds land rent measures to be a biased measure of the willingness to pay for amenities financed by either head taxes (benefit taxes), property taxes (excise taxes), or highway tolls (user fees). These results are used to correct the conventional specification of empirical property value regression models, which traditionally account for neither tax revenue effects nor the excess burden of distortionary taxation.     

Urban housing demography

"The purpose of this article is to review the literature in housing demography with emphasis on its geographic aspects." The differences among developed countries concerning patterns of home ownership are noted. "After a short discussion of households as the point of articulation between population and housing, I will examine interurban differentials in housing demography, review various population-oriented and housing-oriented approaches to intraurban housing demography, and finally, discuss the problems of and challenges for geographic research in this field."     

The Role of Territorial Capital in Local Economic Growth: Evidence from Italy

Territorial capital is defined as the system of territorial assets of economic, cultural, social and environmental nature that ensures the development potential of places. The potential of this concept resides in the recognition of possible interactions between factors of different nature. So far, however, very few studies have focused on the empirical verification of the links between territorial capital and economic growth. This work is devoted to the analysis of the relationship between economic growth and territorial capital in Italian NUTS3 regions between 1999 and 2008. The distribution of territorial assets across regions points out the huge gap between Italian macro-areas. These divergences do not clearly reproduce the differentials in GDP growth. The second part of the analysis is focused on the joint effect of the territorial capital components on the regional economic performance. Our findings emphasize the role of some endogenous factors in explaining the differentiation of regional growth patterns. Moreover, they point out the importance of soft assets in correspondence of an external shock, as the one represented by the recent financial crisis.     

ESTIMATING INTERREGIONAL UTILITY DIFFERENTIALS*

ABSTRACT The major objective of this paper is to estimate regional utility levels based on interregional migration data. We first revealed three stylized facts concerning migration behavior by examining long‐term Japanese data on interregional migration. We then uncovered inconsistency between net migration and utility differential in the presence of distance‐related migration costs. Based on the stylized facts and the inconsistency problem, we formulated an operational model and estimated interregional utility differentials. We showed that the interregional utility differentials converged until the late 1970s. We also showed that the utility estimates are highly correlated with the per capita real income. We also applied the model to interregional migration data in the United States and Canada and confirmed the model's validity.     

TOTAL FACTOR PRODUCTIVITY GROWTH IN MANUFACTURING FURTHER EVIDENCE FROM THE STATES*

In this paper, we first develop a measure of total factor productivity (TFP) growth and summarize a source-of-growth analysis for the manufacturing sector of 48 states. As have others, we find little association between TFP growth differentials and output growth differentials for census regions. At the staterather than the regional level, however, we find a positive association between TFP growth and output growth. We use cross-sectional data to estimate the determinants of the variation in TFP growth. Two results emerge that are important for regional policy and for understanding national productivity trends. First, state investments in education and in transportation infrastructure may affect TFP growth. Second, energy price increases in the early 1970s had no differential effects on productivity growth across states. We also explore the determinants of manufacturing output growth and find that TFP growth, demand growth, wage growth, wage levels, and state corporate income tax rates are significant.     

Skill Matters

Skill is a challenging topic for archeologists because it requires balancing the biases of cultural relativity with the commonsense understanding that some humans are more able than others. Using the content and results model of technology, this paper identifies skill as a variable of technological knowledge with recognizable material results. Late Paleolithic Japanese blade and microblade assemblages suggest that skill differentials exist on the cognitive, operational, and motor levels. These examples, together with ethnoarcheological consideration of modern potters suggest material reflections of technical skill. These include regularity in performance and product, skilled tools, and obvious signs of practice.     

Current Events: The Effects of Electricity Deregulation on State Economies*

Abstract. Panel regressions indicate that state electricity deregulation in the US is associated with higher housing prices, increased activity in the housing market, and lower wages, all of which are consistent with a model of compensating differentials wherein deregulation (which is shown to indeed lower electricity prices) increased the utility of state residents. On the other hand, there is no link between deregulation and job creation.     

The later prehistory of mainland Southeast Asia

Until the recent expansion of research into the prehistory of mainland Southeast Asia, the development of civilizations employing Indian religious and political concepts had been seen as a major fulcrum in the area's history. The prehistoric sequence in the area is reviewed, with particular attention being paid to evidence for ritual, display, exchange, and ranking behavior within lowland sedentary communities. These date to the two or three millennia preceding Indian contact. It is argued that already by the end of the prehistoric period, there were complex centralized societies with a long tradition of recognizing status differentials among individuals, affiliated groups, and communities. The sequence incorporates the exploitation of rice, and bronze and iron working. The chronology of these innovations is compared with that in China. It is not possible at present to argue for single or multiple origins, but the area of southern China is suggested as a crucial one in further research to resolve these issues.     

Principles of a Methodology for Evaluating Living Conditions of a Population under Different Geographic Surroundings

The author develops a methodology for measuring the extra cost involved in settling people under unfavorable geographical conditions. He distinguishes the engineering-cost differential of buildings, roads, utilities, etc., and the “residual effect” of unfavorable geographical conditions which continues to inconvenience the population even after partial compensation by engineering means. While the engineering-cost differential can be relatively easily measured in ruble terms, the residual effect is less easily converted into actual costs. The author looks toward compilation of a map of the cost differentials of human settlement.