Abstract

This paper examines the changing regional geography of wages within the United States during the recent period of economic and employment restructuring. Economic restructuring has been accompanied by widespread attempts to reduce direct wage costs and, more generally, by a realignment of labor relations away from union negotiated wage agreements. We investigate the geography of wage change, using hourly wage data drawn from Bureau of Labor Statistics' Area Wage Surveys. Our analysis provides little evidence of an erosion of real wage differentials at the scale of census regions. Rather, the tendency is towards increasing intraregional variance in wages, especially within the north central United States, reflecting the geographically uneven effects of restructuring within regions.

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