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Title: An inter-urban wage test of the monocentric model

Citation Type: Miscellaneous

Publication Year: 2007

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Abstract: We present a simple test of the monocentric model based on variations in interurbanwage differentials by occupation. We classify occupations as more or less centralaccording to the density of employment where job holders in those occupations work.Our conjecture is that more central occupations receive differentially higher wages inlarger cities, since workers in those occupations face a less desirable locus of housingprices and commuting times than those who have jobs in residential areas. The resultspresented in the empirical section are consistent with this hypothesis, and they are robustto the inclusion of individual-specific human capital variables and city-specific controls.These findings have implications for inter-urban cost of living indexes, where wages areused to approximate the true cost of living.

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Authors: Dewey, Jim; Montes Rojas, Gabriel

Publisher: University of Florida

Data Collections: IPUMS USA

Topics: Methodology and Data Collection, Poverty and Welfare

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