Factor price equality and the economies of the United States

Bernard, Andrew B., Redding, Stephen and Schott, Peter K. (2005) Factor price equality and the economies of the United States. 696. Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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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

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk/
Additional Information:	© 2005 A. B. Bernard, S. Redding and P. K. Schott
Uncontrolled Keywords:	Factor Price Equality, Regional Wages, Neoclassical Trade Theory, Labor Market Areas
Library of Congress subject classification:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System:	R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R23 - Regional Migration; Regional Labor Markets; Population C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods: General > C14 - Semiparametric and Nonparametric Methods J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General F - International Economics > F1 - Trade > F16 - Trade and Labor Market Interactions
Sets:	Collections > Economists Online Research centres and groups > Centre for Economic Performance (CEP) Departments > Economics
Rights:	http://www.lse.ac.uk/library/rights/LSERO.htm
Identification Number:	696
URL:	http://eprints.lse.ac.uk/3693/

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