This dissertation consists of two essays concerning the determination of wages across areas. The first essay investigates the equilibrium relationship between wages and prices across labor markets. Of central interest is the extent to which workers receive higher wages to compensate for...

Implicit values of amenities and the quality of life in an area can be measured by differences in “real wages” across areas, where real wages are computed as nominal wages adjusted for the cost of living. Computing cost of living differences involves several important issues, most important...

This paper considers the effects of the local human capital level and the presence of higher education institutions on the quality of life in U.S. metropolitan areas. The local human capital level is measured by the share of adults with a college degree, and the relative importance of higher...