The Park Place Economist


Widespread urbanization in the United States over the years has changed the economic landscape of the country dramatically. This study explores the effect of working in a rural versus an urban area on wages in Illinois. General research suggests that there may be wage premium for working in urban areas, but this study takes a slightly different approach by focusing on county-by-county data as opposed to regional data. Labor market wages are considered in the context of efficient market theory. Linear regression models are run using data from the American Community Survey in order to explore whether there is a wage premium for those working in an urban county in Illinois.