The Importance of Local Fiscal Conditions in Analyzing Local Labor Markets
扩展了补偿性工资差异模型，证明地方税率和公共服务差异会引发城市间的工资补偿差异，对理解城市工资差异有重要帮助。
A new test of the compensating wage differential model is proposed. The logic behind Jennifer Roback's model, which shows 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. Differences in local fiscal conditions are shown to play important roles in explaining the variance in intermetropolitan wages. Copyright 1989 by University of Chicago Press.