Labor Market Equilibrium and Sun-belt-Frostbelt Earnings Gaps

Michael Podgursky and Paul Swaim

Eastern Economic Journal, 1987, vol. 13, issue 2, 107-113

Abstract: In this paper, the authors estimate interregional earnings differentials using the May-June matched 1979 Current Population Survey. Several biases that may have been present in earlier studies are corrected by controlling for establishment size and job tenure, and by using a nonmetropolitan cost-of-living deflator for workers not residing in major metropolitan areas. Large and statistically-significant differentials in real earnings across regions are found, including a substantial earnings premium for workers in the expanding "sunbelt" states in the South and West. The authors interpret these gaps as indicating disequilibrium between "sunbelt" and "frostbelt" labor markets.

Date: 1987
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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:13:y:1987:i:2:p:107-113

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