Earnings Functions When Wages and Prices Vary by Location

Black, Dan A.; Kolesnikova, Natalia A.; Taylor, Lowell J.

doi:10.1086/592950

Cited by 81 publications

(76 citation statements)

References 31 publications

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“…Although, again, no comparable estimates are available in existing studies, our results relate to a growing literature documenting lower wage inequality in large urban areas (Black et al, 2009;Lee, 2010;Moretti, 2013).…”

Section: Excluding Londonmentioning

confidence: 54%

Evidence on immigrants’ assimilation into recipient labour markets using UK longitudinal data between 1981 and 2006

Gagliardi

Lemos

2015

J Econ Geogr

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How well do immigrants entering the UK assimilate into recipient labour markets? Using the underexploited, sizeable and long Lifetime Labour Market Database between 1981 and 2006, we investigate the evolution of the immigrant-native earnings gap-a measure of immigrants' assimilation-across the entire earnings distribution, across cohorts and across nationalities. We are able to control for observable and unobservable individual-specific characteristics as well as for specific characteristics of both time periods and recipient labour markets, defined as small geographical areas, and crucially, for the interaction of the two, in a robust empirical model specification anchored in the human capital theory. We also control for cohort-specific effects and nationality-specific effects. Our results show little evidence of large or persistent earnings disparities across the earnings distribution, across cohorts or across nationalities. These findings are supportive evidence of successful assimilation of immigrants into the UK, suggesting that recipient labour markets primarily reward individuals' characteristics other than, and regardless of, their immigration status. Nevertheless, some distinctive features emerge. When investigating the evolution of the immigrant-native earnings gap over time, our results illustrate how immigrants from different continents and cohorts have very different assimilation trajectories.

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Section: Excluding Londonmentioning

confidence: 54%

Evidence on immigrants’ assimilation into recipient labour markets using UK longitudinal data between 1981 and 2006

Gagliardi

Lemos

2015

J Econ Geogr

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“…We study changing patterns of spatial college wage premia in the context of changing relative supply and demand of college educated versus high school educated workers. In a similar vein to some of the aspects of earlier work by Berry and Glaeser (2005), Black, Kolesnikova andTaylor (2009) andMoretti (2013), we begin by documenting the nature of changes in education-specific employment shares and the college wage premium across different spatial units, looking at their evolution over time at state and MSA level. To do so, we use US Census and American…”

Section: Introductionmentioning

confidence: 96%

Spatial changes in labour market inequality

Lindley

Machin

2014

Journal of Urban Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu We study spatial changes in labour market inequality for US states and MSAs using Census and American Community Survey data between 1980 and 2010. We report evidence of significant spatial variations in education employment shares and in the college wage premium for US states and MSAs, and show that the pattern of shifts through time has resulted in increased spatial inequality. Because relative supply of college versus high school educated workers has risen faster at the spatial level in places with higher initial supply levels, we also report a strong persistence and increased inequality of spatial relative demand. Bigger relative demand increases are observed in more technologically advanced states that have experienced faster increases in R&D and computer usage, and in states where union decline has been fastest. Finally, we show the increased concentration of more educated workers into particular spatial locations and rising spatial wage inequality are important features of labour market polarization, as they have resulted in faster employment growth in high skill occupations, but also in a higher demand for low wage workers in low skill occupations. Overall, our spatial analysis complements research findings from labour economics on wage inequality trends and from urban economics on agglomeration effects connected to education and technology. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SJEL Classification: J31, R11

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“…In principle, my estimates have the potential to provide an explanation for the slower increase in consumption inequality in this period. 6 My approach is also related to a paper by Black, Kolesnikova, and Taylor (2009) which, along with earlier work by Dahl (2002), criticizes the standard practice of treating the returns to education as uniform across locations. 7 The rest of the paper is organized as follows.…”

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confidence: 99%

Real Wage Inequality

Moretti

2013

American Economic Journal: Applied Economics

253

101

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O ne of the most important developments in the US labor market over the past 30 years has been a significant increase in wage inequality. For example, the difference between the wage of skilled and unskilled workers has increased significantly since 1980. The existing literature has focused on three classes of explanations: an increase in the relative demand for skills caused, for example, by skill-biased technical change; a slowdown in the growth of the relative supply of skilled workers; and the erosion of labor market institutions that protect low-wage workers. 1In this paper, I reexamine how inequality is measured and how it is interpreted. I begin by noting that skilled and unskilled workers are not distributed uniformly across cities within the United States, and I assess how existing estimates of inequality change when differences in the cost of living across locations are taken into account. I then use a simple general equilibrium model of the housing and labor markets to understand how changes in these measures of real wage inequality relate to changes in utility inequality.

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Earnings Functions When Wages and Prices Vary by Location

Cited by 81 publications

References 31 publications

Evidence on immigrants’ assimilation into recipient labour markets using UK longitudinal data between 1981 and 2006

Evidence on immigrants’ assimilation into recipient labour markets using UK longitudinal data between 1981 and 2006

Spatial changes in labour market inequality

Real Wage Inequality

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