Abstract
It has long been recognized that average wages vary strikingly across regions and urban areas in part due to differences in local amenities and fiscal policies. However, analogous differences in wage dispersion remain relatively unexplored. The authors develop a model suggesting that, after accounting for individual characteristics, wage dispersion across income groups should reflect differences in the relative valuation of local amenities and fiscal policies. The authors empirically investigate whether there is a link between local taxes and expenditures and the degree of dispersion in the wage structure and find evidence that such a relationship exists.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
