Alternative theories for explaining the spatial wage inequality: a multilevel competition among human capital, NEG and amenities

Dusan Paredes

No 20, Documentos de Trabajo en Economia y Ciencia Regional from Universidad Catolica del Norte, Chile, Department of Economics

Abstract: This paper presents an empirical framework for analyzing the spatial wage inequality in a Latin American country: Chile. This country is mainly characterized by two stylized facts: the high spatial concentration around metropolitan areas and the key role of natural resources. We consider both elements with a competition between NEG versus amenity framework. Both theories are combined with human capital through a Multilevel Analysis. The results show the low performance of NEG for Chile and how the natural resources are a winner causal mechanism for the case. Additionally, the spatial wage variability is extremely small when it is compared with the wage variation at individual level.

Keywords: Spatial wage inequality; spatial concentration; natural resources; NEG; amenity framework; wage variation at individual level (search for similar items in EconPapers)
Pages: 24 pages
Date: 2012-04, Revised 2012-04
New Economics Papers: this item is included in nep-geo, nep-hrm, nep-lab, nep-lma, nep-ltv and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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