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Sectoral Shares, Specialisation and Metropolitan Wages in the United States, 1969-96

Department of City and Regional Planning, Cornell University, 212 West Sibley Hall, Ithaca, NY 14853, USA, mpd12{at}cornell.edu

Shannon Larsen

Department of City and Regional Planning, Cornell University, 212 West Sibley Hall, Ithaca, NY 14853, USA, .sm119{at}cornell.ude

Jose Lobo

Graduate Field of Regional Science, Cornell University, 108 West Sibley Hall, Ithaca, NY 14853, USA, jl25{at}cornell.edu

Deborah Strumsky

Graduate Field of Regional Science, Cornell University, 108 West Sibley Hall, Ithaca, NY 14853, USA, das41{at}cornell.ed =u

Wahyu Utomo

Graduate Field of Regional Science, Cornell University, 108 West Sibley Hall, Ithaca, NY 14853, USA, wull{at}cornell.edu

We investigate the effect of specialisation upon the level of metropolitan wage per worker. Specialisation is measured by the share of metropolitan earnings in each of five traded goods and services sectors. Sectoral specialisations are assumed to be determinants of location-specific productivity, which in turn is treated as a term in a metropolitan production function. Panel data are used for estimating that production function for 313 metropolitan areas in the US, over the long period 1969-96 and two shorter periods. We find that some specialisations raise average metropolitan wages, some lower it and some have no effect, and that the effects of specialisation differ by time-period.

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