This paper provides new empirical evidence about how workers’ locations affect inequality in earnings and costs of living. I find that young college graduates grow up and choose to live in locations that have smaller effects on their own wages and higher costs of living, relative to locations...

This paper provides new empirical evidence about how workers’ locations affect measurements of earnings inequality (and their changes over time) in the United States. Part of the inequality observed in any given U.S. sample is due to the fact that workers with different skills (and therefore...