Advanced

The sources of the urban wage premium by worker skills: Spatial sorting or agglomeration economies?

Andersson, Martin LU ; Klaesson, Johan and Larsson, Johan P. (2014) In Papers in Regional Science 93(4).
Abstract
We estimate the respective importance of spatial sorting and agglomeration economies in explaining the urban wage premium for workers with different sets of skills. Sorting is the main source of the wage premium. Agglomeration economies are in general small, but are larger for workers with skills associated with non-routine job tasks. They also appear to involve human capital accumulation, as evidenced by the change in the wage of workers moving away from denser regions. For workers with routine jobs, agglomeration economies are virtually non-existent. Our results provide further evidence of spatial density bringing about productivity advantages primarily in contexts when problem-solving and interaction with others are important.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Spatial sorting, agglomeration economies, learning, skills, spatial wage, disparities, density, innovation
in
Papers in Regional Science
volume
93
issue
4
publisher
Wiley-Blackwell
external identifiers
  • wos:000345325300002
  • scopus:84908665470
ISSN
1056-8190
DOI
10.1111/pirs.12025
language
English
LU publication?
yes
id
06ad7f55-e00a-4593-a491-43c5e84fb53b (old id 4985586)
alternative location
http://onlinelibrary.wiley.com/doi/10.1111/pirs.12025/abstract
date added to LUP
2015-01-27 08:41:17
date last changed
2017-09-17 03:19:50
@article{06ad7f55-e00a-4593-a491-43c5e84fb53b,
  abstract     = {We estimate the respective importance of spatial sorting and agglomeration economies in explaining the urban wage premium for workers with different sets of skills. Sorting is the main source of the wage premium. Agglomeration economies are in general small, but are larger for workers with skills associated with non-routine job tasks. They also appear to involve human capital accumulation, as evidenced by the change in the wage of workers moving away from denser regions. For workers with routine jobs, agglomeration economies are virtually non-existent. Our results provide further evidence of spatial density bringing about productivity advantages primarily in contexts when problem-solving and interaction with others are important.},
  author       = {Andersson, Martin and Klaesson, Johan and Larsson, Johan P.},
  issn         = {1056-8190},
  keyword      = {Spatial sorting,agglomeration economies,learning,skills,spatial wage,disparities,density,innovation},
  language     = {eng},
  number       = {4},
  publisher    = {Wiley-Blackwell},
  series       = {Papers in Regional Science},
  title        = {The sources of the urban wage premium by worker skills: Spatial sorting or agglomeration economies?},
  url          = {http://dx.doi.org/10.1111/pirs.12025},
  volume       = {93},
  year         = {2014},
}