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Local Fiscal Policies and Urban Wage Structures

Patricia Beeson, Tara Watson and Lara Shore-Sheppard
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Patricia Beeson: University of Pittsburgh, http://www.econ.pitt.edu/

No 2010-05, Department of Economics Working Papers from Department of Economics, Williams College

Abstract: It has long been recognized that average wages vary strikingly across regions and urban areas, in part due to differences in local amenities and fiscal policies. However, analogous differences in wage dispersion remain relatively unexplored. We develop a model suggesting that, after accounting for individual characteristics, wage dispersion across income groups should reflect differences in the relative valuation of local amenities and fiscal policies. We empirically investigate whether there is a link between local taxes and expenditures and the degree of dispersion in the wage structure, and find evidence that such a relationship exists.

Keywords: inequality; wage distributions; local expenditures; local taxes (search for similar items in EconPapers)
JEL-codes: H7 J31 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2010-04
New Economics Papers: this item is included in nep-afr, nep-dev, nep-evo and nep-neu
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Published in Public Finance Review, 2010, 38: 540-584.

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https://web.williams.edu/Economics/wp/BeesonShoreS ... alFiscalPolicies.pdf

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