Peter Ganong on the Dynamism and Resiliency of the US Economy
Macro Musings with David Beckworth
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Moving to New York, New Jersey, Connecticut?
In 1960, wages in the tri-state area were 38% higher for lawyers and 84% higher for janitors than they are in a group of states that we describe as the deep south. After you take into account housing costs, the premia are almost exactly the same, 39% and 70%. Now, let's fast forward 50 years roughly when I was living in D.C. The wages of lawyers and janitors are 46% higher for the lawyers, 28% higher. So it's quite literally a reversal. It's not worth it anymore to make that move if your occupation is a janitor"
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