Note: Robust standard errors in parentheses. Three asterisks (***) indicate significance at the 1 percent level, two indicate significance at the 5 percent level, and one indicates significance at the 10 percent level.

Demographic controls include variables for gender, experience (age and age squared), marital status (four category), race/ethnicity, and education, which are specified as dummy variables for less than high school, some college, associate degree, college, and advanced degree. Log of hourly wage is the dependent variable. Allocated wages are excluded. Labor market controls include variables for full-time status, hourly status, union status, state unemployment rate, occupations, and industries. In model 1, BEA’s RPP-rents (1 and 2 years lagged) are included in the first-stage regression to predict log RPP-all items, but excluded from the log wage regression. Second-stage results are displayed; first-stage results are available upon request. All other models in the table use BEA's RPP-all items index as the cost-of-living control.