New Economic Geography: Empirical Evidence of the Estimation of the Nominal Wage Equation

Jesus Lopez-Rodriguez and Andrés Faiña ()
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Andrés Faiña: Grupo Jean Monnet de Competencia y Desarrollo (C+D Research Group)

Lecturas de Economía, 2008, issue 69, 41-62

Abstract: In this paper we analyze the empirical developments concerning the estimation of the nominal wage equation proposed in the context of the New Economic Geography models. Results from the empirical works carried out for a sample of countries and for the European Union confirm the theoretical predictions of the models, showing that economic geography variables are key in order to explain the spatial wage structure observed in the different geographical areas mentioned.

Keywords: New Economic Geography; Agglomeration; International Trade; Transport Costs; Market Potential (search for similar items in EconPapers)
JEL-codes: F12 R11 R12 R13 R14 (search for similar items in EconPapers)
Date: 2008
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