What explains productivity differentials across spanish cities?

Lluís Díaz Serrano

Working Papers from Universitat Rovira i Virgili, Department of Economics

Abstract: This paper estimates the determinants of productivity differentials across urban areas in Spain. To do so we resort to Spanish Social Security administrative data (MCVL) matched with workers’ fiscal information. We use two-step approach that allows us to control for the confounding effects due to the sorting of more productive workers and more productive firms in bigger cities. Our results indicate that city size is a significant determinant of productivity differentials across Spanish urban areas. We estimate an elasticity of urban agglomeration of 3.3%, which is within the range of values already observed in other countries. We also find that the level of human capital, firm size and the level of industrial specialization also matters in order explain productivity differentials across Spanish cities. Keywords: Agglomeration, wages, productivity, city size. JEL codes: R10, R23, J31

Keywords: Àrees metropolitanes; Espanya; Ciutats; Productivitat (Economia); Salaris; Economia regional; 332 - Economia regional i territorial. Economia del sòl i de la vivenda (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-eff, nep-eur, nep-geo, nep-sbm and nep-ure
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:urv:wpaper:2072/247805

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