EconPapers    
Economics at your fingertips  
 

Market access, regional price level and wage disparities: the German case

Reinhold Kosfeld () and Hans-Friedrich Eckey ()

Review of Regional Research: Jahrbuch für Regionalwissenschaft, 2010, vol. 30, issue 2, 105-128

Abstract: In this paper we use the NEG framework of the Helpman model to investigate the spatial distribution of wages across German labour market regions based on different assumptions. As the assumptions of equal regional price level and equal real wages are strongly rejected for the German economy, standard approaches may fail to reveal the role of market access in explaining regional wage disparities. In part substantial changes occur when market potential is measured with the aid of regional price levels. With the so-called price index approach, the importance of market access in explaining regional wage differentials is clearly revealed. When controlling for heterogeneity of labour force and spatial dependence, the relationship still remains highly significant. From the price index approach, limited demand linkages of reasonable reach are inferred. Copyright Springer-Verlag 2010

Keywords: New economic geography; Market access; Wage disparities; Regional price levels; R11; R12; R15 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1007/s10037-010-0047-1 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Market Access, Regional Price Level and Wage Disparities: The German Case (2008) 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:spr:jahrfr:v:30:y:2010:i:2:p:105-128

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10037

Access Statistics for this article

Review of Regional Research: Jahrbuch für Regionalwissenschaft is currently edited by Thomas Brenner and Georg Hirte

More articles in Review of Regional Research: Jahrbuch für Regionalwissenschaft from Springer, Gesellschaft für Regionalforschung (GfR) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-12-07
Handle: RePEc:spr:jahrfr:v:30:y:2010:i:2:p:105-128