Spatial Equilibrium Approach to the Analysis of Income Differentials Across Russian Cities

Alexander Skorobogatov

HSE Working papers from National Research University Higher School of Economics

Abstract: This paper discusses a mechanism underlying the input allocations and income distributions across Russian cities of different ages. The empirical strategy is based on using the extended version of the Glaeser-Gottlieb model to guide the interpretation of regression estimates. The results are in line with previous evidence. Newer cities tend to pay higher real wages, but this is offset by the poor consumption amenities. Their opportunities to pay more are related to their productivity advantages resulting from their higher shares of skilled workforce, and more available natural resources. At the same time, these advantages and disadvantages tend to disappear with time, which gives rise to the income convergence.

Keywords: exhaustible resources; urban development; consumer amenities (search for similar items in EconPapers)
JEL-codes: O13 Q32 R12 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2016
New Economics Papers: this item is included in nep-cis and nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in WP BRP Series: Economics / EC, September 2016, pages 1-31

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Persistent link: https://EconPapers.repec.org/RePEc:hig:wpaper:149/ec/2016

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