Intrametropolitan Variation in Wage Rates: The Case of Atlanta Fast-Food Restaurant Workers

Keith Ihlanfeldt and Madelyn V Young

The Review of Economics and Statistics, 1994, vol. 76, issue 3, 425-33

Abstract: This paper utilizes a unique data base to provide some rare evidence on wage variation within a metropolitan area. Positively-sloped wage gradients are found for both black and white employees of fast-food restaurants in Atlanta, Georgia. Blacks are found to work on that portion of the gradient where wage rates are lowest. Evidence on discrimination suggests that consumer prejudice affects the wages paid to black workers. As distance from the central business district center increases, the positive wage gradient effect is found to strongly dominate the negative effect on wages from greater consumer discrimination. Copyright 1994 by MIT Press.

Date: 1994
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