TY  - JOUR
AU  - Gyourko,Joseph
AU  - Tracy,Joseph S.
TI  - The Importance of Local Fiscal Conditions in Analyzing Local Labor Markets
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2040
PY  - 1986
Y2  - October 1986
UR  - http://www.nber.org/papers/w2040
L1  - http://www.nber.org/papers/w2040.pdf
N1  - Author contact info:
Joseph Gyourko
University of Pennsylvania
Wharton School of Business
3620 Locust Walk
1480 Steinberg-Dietrich Hall
Philadelphia, PA 19104-6302
Tel: 215/898-3003
Fax: 215/573-2220
E-Mail: gyourko@wharton.upenn.edu

Joseph Tracy
Executive Vice President
Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045
Tel: 212/720-6344
E-Mail: joseph.tracy@ny.frb.org
AB  - A new test of the compensating wage differential model is proposed. The logic behind Roback's model showing how differences in nonproduced amenities may be reflected in intercity wage differentials is extended to the case of differences in local fiscal conditions, represented by tax rates and publicly produced services. Results show that differences in local tax rates and services provisions do generate compensating wage differentials across cities. The effects of a particularly large set of taxes and effective services output measures are examined.
ER  -