WAGE INEQUALITIES AND AGGLOMERATION IN CROATIA: WHO’S TO BLAME?

Vinko Mustra (), Blanka Skrabic Peric and P. Burnac

Regional and Sectoral Economic Studies, 2012, vol. 12, issue 2

Abstract: This paper uses NUTS3 sub-regional data to investigate the sources of the regional wages differences on the sector level from year 2000 forward in less developed country such as Croatia. The shift-share analysis is used to decompose the spatial variation of wages into productivity effect and occupational composition effect exploring how the spatial variance in wages is attributable to variations in these effects among different sectors. In the last step of the paper we examine the relationship between these two determinants of spatial differences and the agglomeration instrumented by measure of urbanization in the NUTS3 sub-regions.

Keywords: sector composition index; sector-specific agglomeration; Croatia (search for similar items in EconPapers)
JEL-codes: J31 R12 (search for similar items in EconPapers)
Date: 2012
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