How Does Employment Density Influence Individuals' Wages? A Micro Data Approach

Johan Håkansson () and Gunnar Isacsson
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Johan Håkansson: HUI Research, Postal: HUI Research, SE-103 29 Stockholm, Sweden and Dalarna University, SE-791 88, Falun, Sweden
Gunnar Isacsson: The Swedish National Road and Transport Research Institute (VTI), Postal: 781 29 Borlänge, Sweden,

No 97, HUI Working Papers from HUI Research

Abstract: We estimate the effect of employment density on wages in Sweden in a large geocoded data set on individuals and workplaces. Employment density is measured in four circular zones around each individual's place of living. The data contains a rich set of control variables that we use in an instrumental variables framework. Results show a relatively strong but rather local positive effect of employment density on wages. Beyond 5 kilometers the effect becomes negative. This might indicate that the effect of agglomeration economies falls faster with distance than the effects of congestion.

Keywords: agglomeration economies; accessibility; IV; Sweden (search for similar items in EconPapers)
JEL-codes: J24 R10 R23 R40 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2013-10-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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