Why don't state incomes converge? Effective worker pay does not differ among states

Why don't state incomes converge? Effective worker pay does not differ among states

Differing education levels affect mean income differences among states. But mean earnings also differ holding constant the amounts of education and experience; persons in higher income states earn more. The causes could operate either during the process of growing up, or currently. To distinguish be...

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Veröffentlicht in:Economics of education review 1993, Vol.12 (2), p.105-115
1. Verfasser: Simon, Julian L.
Format: Artikel
Sprache:eng
Schlagworte:
Education Work Relationship
Educational Attainment
Educational Economics
Elementary Secondary Education
Human Capital
Immigrants
Salary Wage Differentials
States
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description Differing education levels affect mean income differences among states. But mean earnings also differ holding constant the amounts of education and experience; persons in higher income states earn more. The causes could operate either during the process of growing up, or currently. To distinguish between these two possibilities, the paper compares natives' and immigrants' earnings. Immigrants show a smaller state income effect than do natives, or no effect. This suggests that the differences among states are mainly due to influences during development (when immigrants were not present) rather than during adulthood. That is, the observed state differentials represent not different pay for the same work but (in addition to differences in occupational composition) different pay for different qualities of work, and most likely stem from differences in the quality of schooling.
doi_str_mv 10.1016/0272-7757(93)90022-9
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source RePEc; Periodicals Index Online; ScienceDirect Journals (5 years ago - present)
subjects Education Work Relationship
Educational Attainment
Educational Economics
Elementary Secondary Education
Human Capital
Immigrants
Salary Wage Differentials
States
title Why don't state incomes converge? Effective worker pay does not differ among states
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