The sources of the urban wage premium by worker skills: Spatial sorting or agglomeration economies?
(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:
https://lup.lub.lu.se/record/4985586
- author
- Andersson, Martin LU ; Klaesson, Johan and Larsson, Johan P.
- organization
- publishing date
- 2014
- 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
- 2016-04-01 10:09:13
- date last changed
- 2024-01-06 09:00:19
@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}},
keywords = {{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}},
doi = {{10.1111/pirs.12025}},
volume = {{93}},
year = {{2014}},
}