Economic geography determinants of spatial wage disparities in South Africa: Evidence from a firm‐level panel

Sanduku Mulumba, Lawrence Edwards and David Fadiran

No wp-2024-52, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: In this paper, we use the new economic geography (NEG) framework to estimate the extent to which spatial wage disparities in the South African manufacturing sector are an outcome of economic forces such as market access. To test the relationship, we use the anonymized tax data on employers and employees made available by the South African Revenue Service and National Treasury in collaboration with UNU-WIDER. We first document the key stylized facts that characterize the spatial distribution of wages across regions in South Africa using exploratory spatial data analysis (ESDA) techniques.

Keywords: Wage differentials; Spatial econometrics; Regional economics; Income distribution; Manufacturing industries; Wages; Spatial inequality; Manufacturing firms; Estimation theory (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-geo, nep-tid and nep-ure
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