INTERREGIONAL WAGE DIFFERENTIALS: AN EQUILIBRIUM PERSPECTIVE*

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.     

A HEDONIC MODEL OF INTERREGIONAL WAGES,RENTS, AND AMENITY VALUES*

ABSTRACT This paper develops a general multimarket hedonic model appropriate for a national, interregional study of wages, housing prices, and location-specific amenities. The model encompasses the effects of interregional location, intraurban location, and city size. Typically, hedonic studies focus on a single market such as labor or housing and ignore interactions implicit in a more global compensation mechanism. Examination of the comparative statics of our model indicates that single-market differentials are partial prices and are unreliable measures of amenity values in an interregional context. Unbiased amenity values are estimated for a comprehensive set of amenities using data on housing prices for 34,414 households and wages for 46,004 workers from the 1980 Census of Population and Housing. Statistically significant differences in housing prices and wages are found due to amenities.     

Disaggregate Migration Behavior and the Volume of Interregional Migration

Nested multinomial logit models are used to investigate migration behavior during the 1971–74 period for a large sample of the population of Ecuador. The nested form of the model makes it possible to test hypotheses about the importance of destination characteristics in conditioning the odds for out-migration. Our empirical results indicate that the odds for migration from each origin are conditioned by the expected utilities of the available set of destinations, as well as characteristics of the origins and the personal characteristics of potential migrants. The association between destination characteristics and the frequency of out-migration allows the total volumes of migration to be adjusted to interregional differences in place-specific utilities.     

Recursive Algorithm for Determination of Proximal (Thiessen) Polygons in Any Metric Space

A new and recursive algorithm for determining proximal polygons is based on quadtree concepts. The algorithm can use any distance metric, and produces a quadtree of the image of the proximal polygons. This can be converted to vector form, or be incorporated directly into a quadtree-based geographic information system, in order to solve a number of closest-point problems. The algorithm can also produce the Delaunay triangulation, which is the dual of the proximal polygons. Empirically, the running time of the algorithm is proportional to the number of centers raised to the 1.6 power.