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

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.

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Year of publication:	2009-08
Authors:	Bernard, Andrew ; Redding, Stephen ; Schott, Peter
Institutions:	Census Bureau, Department of Commerce
Subject:	Factor Price Equality \| Regional Wages \| Neoclassical Trade Theory \| Labor Market Areas

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	38 pages
Classification:	F16 - Trade and Labor Market Interactions ; J30 - Wages, Compensation, and Labor Costs. General ; R23 - Regional Migration; Regional Labor Markets; Population ; C14 - Semiparametric and Nonparametric Methods
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005058635