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The sources of the urban wage premium by worker skills: Spatial sorting or agglomeration economies?
Centre for Innovation, Research and Competence in the Learning Economy (CIRCLE), Lund University.
Högskolan i Jönköping, Internationella Handelshögskolan, IHH, Economics, Finance and Statistics.ORCID-id: 0000-0001-8752-0428
Högskolan i Jönköping, Internationella Handelshögskolan, IHH, Economics, Finance and Statistics.ORCID-id: 0000-0001-7432-7442
2014 (engelsk)Inngår i: Papers in regional science (Print), ISSN 1056-8190, E-ISSN 1435-5957, Vol. 93, nr 4, s. 727-747Artikkel i tidsskrift (Fagfellevurdert) Published
Abstract [en]

We estimate the respective importance of spatial sorting and agglomeration economies in explaining the urban wage premium for workers with different sets of skills. Sorting is the main source of the wage premium. Agglomeration economies are in general small, but are larger for workers with skills associated with non-routine job tasks. They also appear to involve human capital accumulation, as evidenced by the change in the wage of workers moving away from denser regions. For workers with routine jobs, agglomeration economies are virtually non-existent. Our results provide further evidence of spatial density bringing about productivity advantages primarily in contexts when problem-solving and interaction with others are important.

sted, utgiver, år, opplag, sider
2014. Vol. 93, nr 4, s. 727-747
Emneord [en]
Spatial sorting, agglomeration economies, learning, skills, spatial wage disparities, density, innovation
HSV kategori
Identifikatorer
URN: urn:nbn:se:hj:diva-22969DOI: 10.1111/pirs.12025ISI: 000345325300002Scopus ID: 2-s2.0-84908665470OAI: oai:DiVA.org:hj-22969DiVA, id: diva2:684046
Tilgjengelig fra: 2014-01-07 Laget: 2014-01-07 Sist oppdatert: 2019-02-22bibliografisk kontrollert
Inngår i avhandling
1. Nonmarket Interactions and Density Externalities
Åpne denne publikasjonen i ny fane eller vindu >>Nonmarket Interactions and Density Externalities
2014 (engelsk)Doktoravhandling, med artikler (Annet vitenskapelig)
Abstract [en]

The four individual papers in this thesis all explore some aspect of the relationship between productivity and the density of economic activity.

The first paper (co-authored with Martin Andersson, and Johan Klaesson) establishes the general relationship between regional density and average labor productivity; a relationship that is particularly strong for workers in interactive professions. In the paper, we also caution that much of the observed differences are not causal effects of density, but driven by sorting of actors to

dense environments.

Paper number two (co-authored with Martin Andersson, and Johan Klaesson) addresses the attenuation of density externalities with space. Using data on the neighborhood-level, and information on first- and second-order neighboring areas, we conclude that the neighborhood effects are stronger for highly educated workers, and that the attenuation of the effect is sharp.

In the third paper, I estimate an individual-level wage equation to assess appropriate levels of aggregation when analyzing density externalities. I conclude that failure to use data on the neighborhood level will severely understate the  benefits of working in the central parts of modern cities.

The fourth paper departs from the conclusions of the previous chapters, and asks whether firms position themselves to benefit from density externalities. Judging by job switching patterns, the attenuation of density externalities are a real issue for the metropolitan workforce. Employees, especially those in interactive professions, tend to move short distances between employers, consistent with clustering to take advantage of significant but sharply attenuating human capital externalities.

sted, utgiver, år, opplag, sider
Jönköping: Jönköping International Business School, 2014. s. 170
Serie
JIBS Dissertation Series, ISSN 1403-0470 ; 096
HSV kategori
Identifikatorer
urn:nbn:se:hj:diva-23661 (URN)978-91-86345-51-8 (ISBN)
Disputas
2014-04-11, B1014, Jönköping, 10:00 (engelsk)
Opponent
Veileder
Tilgjengelig fra: 2014-03-31 Laget: 2014-03-31 Sist oppdatert: 2014-03-31bibliografisk kontrollert

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