Endogenous local labour markets, regional aggregation and agglomeration economies

Jordy Meekes and Wolter H. J. Hassink
Additional contact information
Wolter H. J. Hassink: Utrecht University, Utrecht University School of Economics, Utrecht, the Netherlands IZA – Institute of Labor Economics, Bonn, Germany

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: This paper examines the role of regional aggregation in measuring agglomeration externalities. Using Dutch administrative data, we define local labour markets (LLMs) based on the worker's commuting outcomes, gender and educational attainment, and show that higheducated workers and male workers are characterised by a relatively large LLM. We find that the effect of employment density on workers' wages increases in the level of regional aggregation, explained by larger agglomeration externalities at a higher spatial scale. We quantify subgroup differentials and find that high-educated workers have agglomeration externalities twice as high as low-educated workers. We show that workers who lose their job in denser LLMs experience positive agglomeration externalities on job matching, with more modes losses in wages and again larger density effects at higher levels of regional aggregation.

Keywords: Urban wage premium; Job loss; Local Labour Markets; Commuting; Agglomeration (search for similar items in EconPapers)
JEL-codes: J31 J6 R12 R23 (search for similar items in EconPapers)
Pages: 62pp
Date: 2019-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://melbourneinstitute.unimelb.edu.au/__data/a ... 258410/wp2019n21.pdf (application/pdf)

Related works:
Journal Article: Endogenous local labour markets, regional aggregation and agglomeration economies (2023)
Working Paper: Endogenous Local Labour Markets, Regional Aggregation and Agglomeration Economies (2019)
Working Paper: Endogenous local labour markets, regional aggregation and agglomeration economies (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2019n21

Access Statistics for this paper

More papers in Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Sheri Carnegie ().