Dynamic agglomeration economies and learning by working in specialised regions

The sources of the urban wage premium by worker skills: spatial sorting or agglomeration economies?

Jan Cornelius Peters

Journal of Economic Geography, 2020, vol. 20, issue 3, 629-651

Abstract: This study provides new evidence on the magnitude of dynamic agglomeration economies. It estimates the elasticity of entry wage with regard to the size of the regional labour markets in which previous work experience was acquired and considers, furthermore, the workforce compositions in these regions. The results indicate that not only the sheer size of regional labour markets determine individual knowledge accumulation. Benefits from acquiring experience in large labour markets by workers in service sector occupations are partly caused by human capital externalities, whereas manufacturing workers experience additional dynamic gains from localisation economies, in Germany particularly outside urban centres.

Keywords: Dynamic agglomeration economies; human capital externalities; learning; localisation economies (search for similar items in EconPapers)
JEL-codes: J31 R10 R23 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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