Log-linear Indexes of Nominal Wage Rates and Employment in Eight U. S. Regions
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This paper illustrates the use of log-linear indexes to estimate and test hypotheses about interregional differences in nominal wages and employment. A two-way analysis of variance is applied to cross sections of U. S. retailing and service categories in eight regions. The robustness of the estimated indexes is examined, and a test of consistent aggregation across sectors is proposed.