The Role of Human Capital, Market Potential and Natural Amenities in Understanding Spatial Wage Disparities in Chile

Dusan Paredes

Spatial Economic Analysis, 2013, vol. 8, issue 2, 154-175

Abstract: This paper presents an empirical framework for analysing spatial wage inequality in Chile. Chile is primarily characterized by two stylized facts: the high spatial concentration around the metropolitan area and the key role of natural resources in the country. The paper considers both elements in a competition between NEG (new economic geography) and a theory based on natural resource endowment, with both theories incorporating human capital via a multilevel analysis. The results show the poor performance of NEG for Chile and indicate that natural resources are the principal cause of spatial wage variability in Chile.

Date: 2013
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DOI: 10.1080/17421772.2013.774094

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