WAGES, RENTS, AND AMENITIES: DIFFERENCES AMONG WORKERS AND REGIONS
Economic InquiryPublished 1 January 1988
Jennifer Roback
Citations358
SJR quartileQ1
SJR score1.12
SNIP1.33
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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.
Keywords
Economics, Econometrics and Finance
Journal of Public EconomicsDistribution of tastes and skills and the provision of local public goods
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