Wage Rate Specfication in Regional and Interregional Econometric Models

Author:

Beaumont Paul M.1

Affiliation:

1. Department of Economics, Krannert Graduate School of Management, Purdue University, West Lafayette, IN 47907 USA

Abstract

This paper addresses the issue of wage specification in interregional econometric models. Several shortcomings in commonly used regional wage specifications are demonstrated, and a new inter-regional wage specification is developed. It is based on a wage transmission variable that is simple to construct and that can be applied uniformly to diverse regions. Empirical tests demonstrate the usefulness of this specification.

Publisher

SAGE Publications

Subject

General Social Sciences,General Environmental Science

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