Expensive and low-price places to live: regional price levels and the agglomeration wage differential in Western Germany

Uwe Blien (), Hermann Gartner, Heiko Stüber and Katja Wolf

No 200715, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "Recently, there has been a renewed interest in the agglomeration wage differential. One of the open research question is whether wage differences between large cities and the rural country are due to unobserved differences in regional price levels. In this paper information on regional price levels for western German regions is used to assess this wage differential. Since for many regions price information is not available. Multiple Imputation is used to generate completed data sets. It can be shown that this strategy is more reliable than simply using predictions of regression analysis. The results obtained show that the agglomeration wage differential in Germany is smaller than in the US, and that only a minor part of it can be explained by differences in prices." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Westdeutschland; Lohnunterschied; Preisniveau; regionale Disparität (search for similar items in EconPapers)
JEL-codes: C11 J31 R12 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2007
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in/as: The Annals of Regional Science, Vol. 43, No. 1 (2009), S. 71-88, doi:10.1007/s00168-007-0205-8

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:200715

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