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INTERREGIONAL WAGE DIFFERENTIAL DYNAMICS
Author(s) -
Goldfarb Robert S.,
Yezer Anthony M. J.
Publication year - 1987
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1987.tb01052.x
Subject(s) - wage , economics , convergence (economics) , compensation (psychology) , differential (mechanical device) , efficiency wage , index (typography) , compensating differential , labour economics , quality (philosophy) , econometrics , wage share , computer science , macroeconomics , psychology , engineering , philosophy , epistemology , world wide web , psychoanalysis , aerospace engineering
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.