Wage Series Part 9: Does Geographic Location Matter?

By Jim Cline and Kate Kremer

In the previous two articles in this wage series, we discussed the extent to which population and assessed valuation correlated with wage rankings.  In this article, we discuss geographic location and the effect of various labor markets on public safety wages.

Recently, we have integrated our database into a new mapping program which allows us to create some interesting and dynamic “wage maps.” These maps allow us to examine labor market impacts on wages from a variety of perspectives. Using City Police, for example, it becomes clear, the extent to which proximity to the Seattle area labor market affects wages.

Just looking at East versus West also shows a difference in wages:

This map also reveals that the extent of the regional differentiation may vary by county to county:

 

And this map shows how Fire Wages vary by location:

 

In interest arbitration proceedings, there is often a great deal of discussion about “labor markets” and how those markets affect the selection of appropriate “comparables.”  Data of that type, reported and revealed by these maps, provide a visual depiction of those labor market factors that could come into play in the selection of your comparables.  Clearly, when it comes to wages, geographic location does matter.

As with other wage data discussed in these series, we have posted various local market wage maps and charts on our premium website for the review of premium website subscribers.