Journal Article

Equalizing regional differences in wages : a study of wages and migration in the South and other regions

Abstract: Is the South rebelling againthis time against one of the tenets of economic theory? Neoclassical economic theory predicts that wage differentials between regions will disappear with time as workers move from low-wage areas to high-wage areas. However, in the seventies people tended to migrate southward, even though the South is usually thought to be a low-wage region. In his essay. Equalizing Regional Differences in Wages: A Study of Wages and Migration in the South and Other Regions, William E. Cullison offers a simple resolution to this paradox. By adjusting for the cost of living and by comparing similar workers in similar jobs, Cullison demonstrates that real wages are actually higher in the South than in most regions. This result may be a surprise to those who had attributed population inflows to a superior quality of life in the South.

Keywords: Employment (Economic theory); Wages;

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Economic Review

Publication Date: 1984

Volume: 70

Issue: May

Pages: 20-33