Factor Price Equality and the Economies of the United States
37 Pages Posted: 8 Aug 2005
There are 3 versions of this paper
Factor Price Equality and the Economies of the United States
Factor Price Equality and the Economies of the United States
Date Written: June 2005
Abstract
We develop a methodology for identifying departures from relative factor price equality across regions that is valid under general assumptions about production, markets and factors. Application of this methodology to the United States reveals substantial and increasing deviations in relative skilled wages across labor markets in both 1972 and 1992. These deviations vary systematically with labor markets' industry structure both in cross section and over time.
Keywords: Factor price equality, regional wages, neoclassical trade theory, labor market areas
JEL Classification: C14, F16, J30, R23
Suggested Citation: Suggested Citation
Stephen J. Redding (Contact Author)
Princeton University ( email )
Princeton, NJ 08544-1021
United States
HOME PAGE: http://www.princeton.edu/~reddings/
Peter K. Schott
Yale University - School of Management ( email )
135 Prospect Street
P.O. Box 208200
New Haven, CT 06520-8200
United States
203-436-4260 (Phone)
203-436-6974 (Fax)
HOME PAGE: http://www.som.yale.edu/faculty/pks4
Yale University - Cowles Foundation
Box 208281
New Haven, CT 06520-8281
United States
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