In 2013, the median earnings of nonmetropolitan workers was 24% less than the median earnings of metropolitan workers. This was due to the higher costs of living in metropolitan areas. What is the name for this phenomenon

The name for the phenomenon is GEOGRAPHICAL effects on earnings variation of workers in metropolitan and nonmetropolitan areas.

Step-by-step explanation:

Geography matters a great deal for earnings difference between workers in non metropolitan and metropolitan areas.

The United States can be divided into metropolitan areas (cities and their surrounding areas) as well as state nonmetropolitan areas (the parts of a state not included in any metropolitan area).

Together, we use the term “locations” to refer to areas included in this analysis. Median earnings are $26,000 in Sebring, Florida, while at the top of the range median earnings are $65,000 in San Jose–Sunnyvale–Santa Clara, California.

This accounted for the earnings variation in 2013, when the median earnings of nonmetropolitan workers was 24% less than the median earnings of metropolitan workers.

How much does location matters for earnings?

After controlling for demographic differences, workers in the top 30 locations(Metropolitan areas) earn an average of 20 percent more than the median worker in the United States and 37 percent more than workers in the bottom 30 locations(Nonmetropolitan areas).

We can conclude median annual earnings of workers are substantially higher in metropolitan area than in nonmetropolitan areas.

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step-by-step explanation:

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