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The Determinants and Welfare Implications of US Workers' Diverging Location Choices by Skill: 1980–2000
Open accessAbstract
From 1980 to 2000, the rise in the US college/high school graduate wage gap coincided with increased geographic sorting as college graduates concentrated in high wage, high rent cities. This paper estimates a structural spatial equilibrium model to determine causes and welfare consequences of this increased skill sorting. While local labor demand changes fundamentally caused the increased skill sorting, it was further fueled by endogenous increases in amenities within higher skill cities. Changes in cities' wages, rents, and endogenous amenities increased inequality between high school and college graduates by more than suggested by the increase in the college wage gap alone. (JEL D31, I26, J24, J31, J61, R23)
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Cites
Changes in Relative Wages, 1963-1987: Supply and Demand Factors
Katz, L. F., & Murphy, K. M. (1992) · The Quarterly Journal of Economics · doi:10.2307/2118323 · Cited by 4,793
The divergence of human capital levels across cities
Berry, C. R., & Glaeser, E. L. (2005) · Papers in Regional Science · doi:10.1111/j.1435-5957.2005.00047.x · Cited by 692
Cited by
The China Syndrome: Local Labor Market Effects of Import Competition in the United States
Autor, D. H., Dorn, D., & Hanson, G. H. (2013) · American Economic Review · doi:10.1257/aer.103.6.2121 · Cited by 4,459
The growth of low-skill service jobs and the polarization of the US labor market
Autor, D. H., & Dorn, D. (2013) · American Economic Review · doi:10.1257/aer.103.5.1553 · Cited by 3,824
Quasi-Experimental Shift-Share Research Designs
Borusyak, K., Hull, P., & Jaravel, X. (2022) · The Review of Economic Studies · doi:10.1093/restud/rdab030 · Cited by 1,427
The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade
Autor, D. H., Dorn, D., & Hanson, G. H. (2016) · Annual Review of Economics · doi:10.1146/annurev-economics-080315-015041 · Cited by 1,305
Song, J., Price, D. J., Guvenen, F., Bloom, N., & von Wachter, T. (2019) · The Quarterly Journal of Economics · doi:10.1093/qje/qjy025 · Cited by 674
Metadata
- Authors
- Diamond, R.
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2016-03-01
- Volume
- 106
- Issue
- 3
- Pages
- 479-524
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W615208969
- Cited by
- 1,042
- References
- 2
- FWCI
- 145.74
- Type
- journal article
- Language
- en
- Open access
- green
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- Diamond, R. (2016). The Determinants and Welfare Implications of US Workers' Diverging Location Choices by Skill: 1980–2000. American Economic Review. https://doi.org/10.1257/aer.20131706
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
