1988
DOI: 10.1111/j.1465-7295.1988.tb01667.x
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Wages, Rents, and Amenities: Differences Among Workers and Regions

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 variations do not account for wage differences, but actually exacerbate them. This conclusion results from a model in which variations in rents and wages are equalizing differences for amenity differences. Empirical results are consistent with the model.

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Cited by 271 publications
(184 citation statements)
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“…This general equilibrium model would alSOintroduce theroleplayedhy the prices offixed factors, such as land,in theequilibrating pro~ss. Although research in thistopicisin its infancy(see, forinstance, Heckman and Sedlacek, 1985;Roback, 1988),itisclearthatthis type ofanalysis shoulrf providea much &eper characterization of labor market equilibrium.…”
Section: 'mentioning
confidence: 99%
See 1 more Smart Citation
“…This general equilibrium model would alSOintroduce theroleplayedhy the prices offixed factors, such as land,in theequilibrating pro~ss. Although research in thistopicisin its infancy(see, forinstance, Heckman and Sedlacek, 1985;Roback, 1988),itisclearthatthis type ofanalysis shoulrf providea much &eper characterization of labor market equilibrium.…”
Section: 'mentioning
confidence: 99%
“…This general equilibrium model would alSOintroduce theroleplayedhy the prices offixed factors, such as land,in theequilibrating pro~ss. Although research in thistopicisin its infancy(see, forinstance, Heckman and Sedlacek, 1985;Roback, 1988),itisclearthatthis type ofanalysis shoulrf providea much &eper characterization of labor market equilibrium.The discussion also highlights a feature of the k~tate selection model that is shared by the standard 2-state Roy model. In both models, the ranking of skill prices across regions completely determines where a region ranks in terms of the average skill level of its inhabitants.…”
mentioning
confidence: 99%
“…Desta forma, nesta seção é apresentada inicialmente tal estrutura espacial de equilíbrio, seguindo-se de perto a proposta de Roback (1982Roback ( , 1988. Em seguida, são apresentadas e discutidas formas alternativas de ordenação das localidades de acordo com a qualidade de vida, enfatizando-se a nova proposta sugerida neste artigo.…”
Section: Equilíbrio Espacial E Ranking De Qualidade De Vidaunclassified
“…De fato, desde o trabalho de Rosen (1979) sobre os diferenciais compensatórios de salários e da análise destes diferenciais sob equilíbrio geral por Roback (1982), os economistas têm uma explicação para as disparidades salariais entre localidades sujeitas a distintos níveis de amenidades ou bens públi-cos: as diferenças de remunerações entre as localidades, observadas mesmo para indivíduos igualmente produtivos, refletiriam os diferentes níveis de disponibilidades destas amenidades ou bem públicos nas localidades, de forma que, sob equilíbrio (inexistência de ganhos com arbitragem locacional), as localidades mais bem (mal) servidas com respeito às referidas amenidades apresentariam menores (maiores) remunerações para os seus residentes.Em conformidade, também de forma pioneira, Roback (1988) mostrou que as disparidades de renda entre trabalhadores de diferentes regiões americanas tornam-se insignificantes quando tais diferenças são condicionadas por um conjunto de amenidades naturais e sociais.…”
Section: Introductionunclassified
“…In the standard approach, in competitive labour markets wage differentials in part compensate for the non-pecuniary (dis)advantages of a particular occupation (Rosen, 1986) and for the (dis)advantages of locating and working in a particular geographical area (Roback, 1982(Roback, , 1988. Where wages are centrally regulated, such compensating adjustments do not occur (at least, overtly) and the quality and composition of the workforce is thereby affected by these (dis)advantages.…”
Section: Introductionmentioning
confidence: 99%