The US Gender Wage Gap Across Urban and Rural Communities

This study analyzes the relationship between the gender wage gap and urban, rural settings in the US. The labor market is distinctly different across geographies particularly as it relates to female economics. Using 10 years... [ view full abstract ]

This study analyzes the relationship between the gender wage gap and urban, rural settings in the US. The labor market is distinctly different across geographies particularly as it relates to female economics. Using 10 years of current data from the American Community Survey, this analysis controls for all human capital factors using a fertility model to concentrate specifically on the effect of urban or rural geographic setting on the wage of women as it compares to their male peers. The new availability of rural survey statistics through the ACS is crucial for understanding how rural labor markets act differently than urban labor markets. This analysis reveals a significant benefit for women working in urban areas as compared to their rural counterparts. Not only does urban setting positively effect both male and female wages, the effect on female wages is independently larger than the effect on the entire group. Despite previous research showing that women in higher human capital required industries concentrated in urban areas experience a large wage gap, the positive effect of living in cities on the observed wage likely due to a decreased immobility effect which causes women in rural areas to experience less fulfilling careers. These observed effects of urban living on female wage equality not only increases our understanding the nature of the gender wage gap in the US, but in doing so is helpful in identifying ways in which to limit and minimize gender specific labor market frictions that cause wage gaps.