Productivity Differences and Agglomeration Across Districts of Great Britain
CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague
This paper examines the impact of employment density (agglomeration) on the hourly earnings of workers across districts of Great Britain. The potentially two-way causality between agglomeration and productivity is dealt with using two instruments: the total land area of a district and its population density. The estimated agglomeration effect is similar across different levels of territorial aggregation; however, the effect is stronger when looking only across Metropolitan areas. There is evidence of endogeneity only when the sample is split into Metropolitan and Non-Metropolitan areas and even so endogeneity has only little effect on the estimates.
Keywords: Agglomeration; Productivity; Multiple Instruments. (search for similar items in EconPapers)
JEL-codes: C31 O18 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-geo and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:cer:papers:wp289
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