Local employment concentration and hourly earnings

Using data from the 1980 PUMS D and OLS regression, I indirectly test a model of how local labor market structure affects individual hourly earnings through the intra-area rollout effect. I find (1) beyond influencing wages through the jobs individuals receive, the local labor market's employment structure has a very small impact on individual hourly earnings and (2) local employment concentration in high paying industries tends to have a positive impact on individual net hourly earnings; employment concentration in low paying industries tends to negatively influence individual net hourly earnings.