The demand and supply of labor and interstate relative wages: an empirical analysis

The impact of labor on interstate wage relativities are analyzed in this paper. Migration, unemployment, and employment growth related variables are integrated into a short- and long-run time-series model of relative wage determination. It is found that in and out gross migration may increase or decrease relative wages as may employment growth. As expected, increasing unemployment tends to induce decreases in average relative wages. The model is analyzed over the period 1958-1975 using data derived from the Continuous Work History Sample of the Social Security Administration.