Regional wage differentials - does distance matter?

Morten Marott Larsen ()

ERSA conference papers from European Regional Science Association

Abstract: This paper uses econometric methods to analyse causes of regional wage differentials in Denmark for the period1996-1999 and quantifies the importance of spatial proximity. Grouped data sets are used. Two concepts of distance are investigated. The first assumes that there is a positive production externality present in a centre that declines as the distance to the centre increases. Different definitions of a centre are tested. The second distance concept is commuting distance. Both distance measures have the expected sign and are significant, but the effects are small. JEL classification: J31 Key words: Wage differentials, distance, grouped data.

Date: 2003-08
New Economics Papers: this item is included in nep-geo and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa03p418

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