Essays in Local Labor Economics

Abstract

This dissertation consists of three independent chapters. Chapter 1 examines the determinants and welfare implications of the increased geographic of workers by skill from 1980 to 2000. I estimate a structural spatial equilibrium model of local labor demand, housing supply, labor supply, and amenity levels. The estimates indicate that cross-city changes in firms' demands for high and low skill labor were the underlying forces driving the increase in geographic skill sorting. I find that the combined effects of changes in cities' wages, rents, and endogenous amenities increased well-being inequality between high school and college graduates by a significantly larger amount than would be suggested by the increase in the college wage gap alone.