Krupka, Douglas J.; Donaldson, Kwame - Forschungsinstitut zur Zukunft der Arbeit <Bonn> - 2007
The model of compensating differentials in regional labor markets was developed by Roback(1982). The model interprets regional differences in constant quality wages and rents ascompensating firms and residents for inter-regional differences in amenities. The modelassumes that the costs of...