Testing for Factor Price Equality in the Presence of Unobserved Factor Quality Diferences

Andrew Bernard, Stephen Redding and Peter Schott

Working Papers from U.S. Census Bureau, Center for Economic Studies

Abstract: We develop a method for identifying departures from relative factor price equality across regions that is valid under general assumptions about production, markets and factors. Application of this method to the United States reveals substantial and increasing deviations in relative skilled wages across labor markets in both 1972 and 1992. These deviations vary systematically with labor markets .industry structure both in the cross section and over time.

Keywords: Factor Price Equality; Regional Wages; Neoclassical Trade Theory; Labor Market Areas (search for similar items in EconPapers)
JEL-codes: C14 F16 J30 R23 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2009-08
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Citations: View citations in EconPapers (4)

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https://www2.census.gov/ces/wp/2009/CES-WP-09-22.pdf First version, 2009 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:cen:wpaper:09-22

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