The estimation of urban premium wage using propensity score analysis: some considerations from the spatial perspective

Dusan Paredes, Marcelo Lufin and Patricio Aroca

No 21, Documentos de Trabajo en Economia y Ciencia Regional from Universidad Catolica del Norte, Chile, Department of Economics

Abstract: This paper estimates the Urban Wage Premium for the Chilean case, but proposing three contributions to the literature. First, the geographical space is reconfigured using functional regions instead administrative regions. This process is carried out using techniques from the spatial econometric literature. Second, we exploit the use of micro data. We estimate the wage equation using a survey at individual level that avoids problems associated with regional aggregated specifications. Finally, we set the comparability among observations using matching comparison. Thus, we isolate the urban effect from other alternative sources. Our results suggest a Urban Wage Premium between 4 and 21%.

Keywords: Size; and; Spatial; Distributions; of; Regional; Economic; Activity (search for similar items in EconPapers)
JEL-codes: R12 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2012-04, Revised 2012-04
New Economics Papers: this item is included in nep-geo, nep-lma and nep-ure
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Downloads: (external link)
https://sites.google.com/a/ucn.cl/wpeconomia/archivos/WP2012-07.pdf First version, 2012 (application/pdf)

Related works:
Chapter: The Estimation of Urban Premium Wage Using Propensity Score Analysis: Some Considerations from the Spatial Perspective (2012)
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