The effects of agglomeration on wages: evidence from the micro-level

Bernard Fingleton () and Simonetta Longhi

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper estimates individual wage equations in order to test two rival non-nested theories of economic agglomeration, namely New Economic Geography (NEG), as represented by the NEG wage equation and urban economic (UE) theory, in which wages relate to employment density. The paper makes an original contribution by evidently being the first empirical paper to examine the issue of agglomeration processes associated with contemporary theory working with micro-level data, highlighting the role of gender and other individual-level characteristics. For male respondents, there is no significant evidence that wage levels are an outcome of the mechanisms suggested by NEG or UE theory, but this is not the case for female respondents. We speculate on the reasons for the gender difference.

Keywords: urban economics; new economic geography; household panel data (search for similar items in EconPapers)
JEL-codes: C21 C31 C33 D1 O18 R12 R20 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2011-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://eprints.lse.ac.uk/58608/ Open access version. (application/pdf)

Related works:
Journal Article: THE EFFECTS OF AGGLOMERATION ON WAGES: EVIDENCE FROM THE MICRO-LEVEL (2013)
Working Paper: The Effects of Agglomeration on Wages: Evidence from the Micro-Level (2011)
Working Paper: The effects of agglomeration on wages: evidence from the micro-level (2011)
Working Paper: The effects of agglomeration on wages: evidence from the micro-level (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:58608

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