EconPapers    
Economics at your fingertips  
 

Firm productivity, wages, and agglomeration externalities

Marcel Fafchamps () and Said El Hamine

Research in Economics, 2017, vol. 71, issue 2, 291-305

Abstract: Using detailed census data from Morocco, this paper investigates the existence of local externalities in manufacturing. In contrast to many other studies that focus on aggregate employment growth, we examine the effect of externalities on firm-level productivity and wages. Our empirical results show that agglomeration externalities occur through both productivity and wage effects. Returns to specialization are strong and large in magnitude. In accordance with the views of Marshall, Arrow and Romer, the net effect of competition on productivity and wages tends to be negative. Large firms facing no local competition have higher revenues and pay lower wages. We also find some limited evidence in favor of the diversity argument put forth by Jacobs.

Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1090944316302939
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Firm productivity, wages, and agglomeration externalities (2004) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reecon:v:71:y:2017:i:2:p:291-305

Access Statistics for this article

Research in Economics is currently edited by Federico Etro

More articles in Research in Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-07-20
Handle: RePEc:eee:reecon:v:71:y:2017:i:2:p:291-305