This paper documents that virtually all of the growth in the skilled wage premium over the 1980s in the United States was confined to metropolitan areas. Explanations for the growing skilled premium will therefore need to take location into account.

Using short-run expenditures from household surveys as a proxy may create attenuated estimates of the impact of permanent income on economic outcomes. We use repeated observations to calculate reliability ratios and estimate errors in variables regressions of the impact of income on nutrition....