Wages, Rents, and Amenities: Differences among Workers and Regions

Jennifer Roback

Economic Inquiry, 1988, vol. 26, issue 1, 23-41

Abstract: What explains persistent regional earnings differences? This paper argues that regional differences in amenities can account for the wage differences; in contrast, cost-of-living va riations do not account for wage differences, but actually exacerbate them. This conclusion results from a model in which variations in re nts and wages are equalizing differences for amenity differences. Emp irical results are consistent with the model. The model also extends previous work by considering two types of workers instead of a homoge neous work force. The wages of one type of worker prove to be depende nt on the preferences of the other type. Copyright 1988 by Oxford University Press.

Date: 1988
References: Add references at CitEc
Citations: View citations in EconPapers (155)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ecinqu:v:26:y:1988:i:1:p:23-41

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Economic Inquiry is currently edited by Preston McAfee

More articles in Economic Inquiry from Western Economic Association International Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().