Amenities and the Labor Earnings Function

10 Pages Posted: 27 Jul 2009 Last revised: 4 Aug 2010

See all articles by Philip E. Graves

Philip E. Graves

University of Colorado at Boulder - Department of Economics

Michelle M. Arthur

Purdue University - Department of Management

Robert L. Sexton

Pepperdine University - Economics Department

Date Written: 1999

Abstract

We show here that the return to education and several other concerns in the labor earnings literature are substantially impacted by amenity variation. Moreover, the nature of the impacts are in some cases counter-intuitive. For example, if higher education households move to nicer amenity locations, one might expect that this would lead to a downward bias in the return to education. It turns out that as an empirical matter, nice locations for households tend also to be still nicer from firms' perspectives with higher wages observed in such ares.

Keywords: amenities, returns to education, labor earnings function

JEL Classification: J20, J24, J31

Suggested Citation

Graves, Philip E. and Arthur, Michelle M. and Sexton, Robert L., Amenities and the Labor Earnings Function (1999). Journal of Labor Research Vol. 29, No. 3, 1999. Available at SSRN: https://ssrn.com/abstract=1438700

Philip E. Graves (Contact Author)

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309-0256
United States

Michelle M. Arthur

Purdue University - Department of Management ( email )

West Lafayette, IN 47907-1310
United States
765-494-4445 (Phone)
765-494-9658 (Fax)

Robert L. Sexton

Pepperdine University - Economics Department ( email )

24255 Pacific Coast Highway
Malibu, CA 90263
United States

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