So after talking to Audrey Singer last week about local labor market shortages vs. national ones, something occured to me: would the real wage cyclicality literature produce any different results if real wages were calculated using local CPI measures (I assume they juse use national measures and ignore the problem of location, but I could be wrong).
Local CPI may move too closely with national CPI to matter, but it's an interesting thought. That would be a big effort I think... more of a dissertation chapter kind of thing. Anyone know if that's been looked into?
4 hours ago