Sage Journals: Discover world-class research

Abstract

This article focuses on the role of real and money wages in a state’s growth (macro) and location (micro) prospects. Data from the Bureau of Labor Statistics Occupational Employment Statistics (OES) survey for 2000 were used first to indirectly estimate state cost-of-living (COL) indices. These COL indices are the major contribution of this article. The methodology employed, in combination with the current 6-month reporting cycle for the OES, should eventually allow the computation of accurate inflation indices for states and regions. By applying these COL indices to OES-reported money wages by occupation, estimates of real wages are derived. Likely growth scenarios, both in terms of total employment and for certain key occupations, are investigated under two assumptions: first, that workers positively respond, by entry and migration, to those areas having above-average real wages, and second, that capital flows respond to below-average money wages.

Keywords

state cost of living money and real wages by occupation regional growth

Get full access to this article

View all access options for this article.

References

Amos, O. (1991). Divergence of per capita real state product by sector—1963 to 1986. The Review of Regional Studies, 21, 221-234.

Calem, P. S. , & Carlino, G. A. (1991). Urban agglomeration economies in the presence of technical change. Journal of Urban Economics, 29, 82-95.

Carlino, G. A. (1982). Manufacturing agglomeration economies as returns to scale: A production function approach. Papers of the Regional Science Association, 50, 95-108.

Carlino, G. A. , & Mills, L. (1996). Convergence and the U.S. states: A time-series analysis. Journal of Regional Science, 36, 597-616.

Fogarty, M. S. , & Garofalo, G. A. (1978). An exploration of the real productivity effects of cities. The Review of Regional Studies, 8, 65-82.

Gerking, S. D. , & Weirick, W. N. (1983). Compensating differences and interregional wage differentials. Review of Economics and Statistics, 65, 483-487.

Giarratani, F. , & Soeroso . (1985). A neoclassical model of regional growth in Indonesia. Journal of Regional Science, 25, 373-382.

Hammill, M. L. , & Kurre, J. A. (2005, April). Estimating the spatial cost of living for areas without primary price data. Paper presented at the annual meetings of the Southern Regional Science Association, Washington, DC.

Heilbrun, J. (1987). Urban economics and public policy. New York: St. Martin’s.

10.

Koo, J. , Phillips, K. R. , & Sigalla, F. D. (2000). Measuring regional cost of living. Journal of Business & Economic Statistics, 18, 127-136.

11.

O’Sullivan, A. (2000). Urban economics. New York: McGraw-Hill/Irwin.

12.

Riefler, R. F. (2003, February). Geographic differences in year 2000 occupational salaries. Paper presented at the annual meeting of the Western Regional Science Association, Rio Rico, AZ.

13.

Riefler, R. F. (2005, April). Indirect estimation of regional cost-of-living indices. Paper presented at the joint meetings of the Mid-Continent and Southern Regional Science Associations, Washington, DC.

14.

Siebert, H. (1969). Regional economic growth theory and policy. Scranton, PA: International Textbook.

15.

U.S. Bureau of Labor Statistics . (2000). Occupational employment statistics. Washington, DC: U.S. Department of Labor. Retrieved April 2001 from http://www.bls.gov/oes/home.htm

16.

U.S. Bureau of Labor Statistics . (2001). Occupation earnings and industry employment data. Washington, DC: U.S. Department of Labor. Retrieved from http://www.bls.gov/lau/home.htm or www.bls.gov/oes/home.htm

State Patterns of Occupational Earnings: Implications for Long-Term Growth

Abstract

Keywords

Get full access to this article

References