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

Andersson, Martin; Klæsson, Johan; Larsson, Johan P.

doi:10.1111/pirs.12025

Cited by 79 publications

(88 citation statements)

References 42 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…When also controlling for unobservable characteristics of workers (columns 4-6, Table 3), the city effects are still increasing in education level, from 3.2% to 6%. Hence, consistent with most US studies as well as the Swedish study by Andersson et al (2014), we find that the city effect is increasing in education level / skills. This result survives when worker fixed effects are included, but educational differences become smaller.…”

Section: Static Agglomeration Effects Across Education Groupssupporting

confidence: 78%

“…Exceptions are Adamson et al (2004) who find a nonlinear relation between the urban wage premium and education level, and Lee (2010) who finds that the urban wage premium is negative for high-skilled health workers and positive for less skilled health workers. A Swedish study based on panel data of all private sector workers finds that the urban wage premium is largest for workers in occupations that demand non-routine tasks (Andersson et al, 2014), whereas, in Italy, return to higher education seems to be negatively correlated with regional population size (Di Addario and Patacchini, 2008).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Education, experience, and urban wage premium

Carlsen

Rattsø

Stokke

2016

Regional Science and Urban Economics

View full text Add to dashboard Cite

Recent studies investigate the urban wage premium associated with education and work experience. We study the effect of work experience and firm tenure across education groups. All education groups benefit more from working in cities, and the extra city wage premium highly educated enjoy over less educated workers is increasing with city work experience. Interestingly, the city wage premium of less educated workers is increasing in firm tenure, while the highly educated gain more by shifting jobs between firms. The analysis is based on administrative registers covering all full time private sector workers in Norway, about 4.7 million worker-year observations.

show abstract

Section: Static Agglomeration Effects Across Education Groupssupporting

confidence: 78%

Section: Introductionmentioning

confidence: 99%

Education, experience, and urban wage premium

Carlsen

Rattsø

Stokke

2016

Regional Science and Urban Economics

View full text Add to dashboard Cite

show abstract

“…It is well established in the literature that large core regions tend to host significant research and development (R&D) activities, and are also more geared toward entrepreneurialism in knowledge-intensive and innovation activities (e.g., Duranton andPuga 2001, 2005). Recent studies that focus on worker skills also show that larger cities and core regions are not only more intensive in, but also more rewarding for, skills associated with innovation activities such as cognitive skills related to problem solving and creativity (Bacolod, Blum, and Strange 2009;Andersson, Klaesson, and Larsson 2014). Against this backdrop, core regions with a higher density of knowledge-intensive activities are likely to be in a better position to develop, for the region, truly new industries and to break from their past industry structure.…”

Section: Introductionmentioning

confidence: 99%

Industrial Diversification in Europe: The Differentiated Role of Relatedness

Xiao¹,

2018

Self Cite

View full text Add to dashboard Cite

There is increasing interest in the drivers of industrial diversification, and how these depend on economic and industry structures. This article contributes to this line of inquiry by analyzing the role of industry relatedness in explaining variations in industry diversification, measured as the entry of new industry specializations, across 173 European regions during the period 2004-2012. First, we show that there are significant differences across regions in Europe in terms of industrial diversification. Second, we provide robust evidence showing that the probability that a new industry specialization develops in a region is positively associated with the new industry's relatedness to the region's current industries. Third, a novel finding is that the influence of relatedness on the probability of new industrial specializations depends on innovation capacity of a region. We find that relatedness is a more important driver of diversification in regions with a weaker innovation capacity. The effect of relatedness appears to decrease monotonically as the innovation capacity of a regional economy increases. This is consistent with the argument that high innovation capacity allows an economy to break from its past and to develop, for the economy, truly new industry specializations. We infer from this that innovation capacity is a critical factor for economic resilience and diversification capacity.

show abstract

“…Burger et al (2010) found different effects of agglomeration forces across geographic levels in the Netherlands. In Andersson et al (2014), Swedish employment data is used at a 1×1 km and 250×250 m sized grid. Furthermore, unit observation size and some of its features may be correlated and hence, estimates may be biased.…”

Section: Introductionmentioning

confidence: 99%

Grid and shake: spatial aggregation and the robustness of regionally estimated elasticities

Békés

Harasztosi

2017

Ann Reg Sci

View full text Add to dashboard Cite

This paper proposes a simple method measuring spatial robustness of estimated coefficients and considers the role of administrative districts and regions' size. The procedure, dubbed "Grid and Shake", offers a solution for a practical empirical issue, when one compares a variables of interest across spatially aggregated units, such as regions. It may, for instance, be applied to investigate competition, agglomeration, spillover effects. The method offers to (i) have carry out estimations at various levels of aggregation and compare evidence, (ii) treat uneven and non-random distribution of administrative unit size, (iii) have the ability to compare results on administrative and artificial units, and (iv) be able to gouge statistical significance of differences. To illustrate the method, we use Hungarian data and compare estimates of agglomeration externalities at various levels of aggregation. We find that differences among estimated elasticities found at various levels of aggregation are broadly in the same range as those found in the literature employing various estimation method. Hence, the method of spatial aggregation seems to be of equal importance to modeling and econometric specification of the estimation. AbstractThis paper proposes a simple method measuring spatial robustness of estimated coefficients and considers the role of administrative districts and regions' size. The procedure, dubbed "Grid and Shake", offers a solution for a practical empirical issue, when one compares a variables of interest across spatially aggregated units, such as regions. It may, for instance, be applied to investigate competition, agglomeration, spillover effects. The method offers to (i) have carry out estimations at various levels of aggregation and compare evidence, (ii) treat uneven and non-random distribution of administrative unit size, (iii) have the ability to compare results on administrative and artificial units, and (iv) be able to gouge statistical significance of differences. To illustrate the method, we use Hungarian data and compare estimates of agglomeration externalities at various levels of aggregation. We find that differences among estimated elasticities found at various levels of aggregation are broadly in the same range as those found in the literature employing various estimation method. Hence, the method of spatial aggregation seems to be of equal importance to modeling and econometric specification of the estimation.

show abstract

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

Cited by 79 publications

References 42 publications

Education, experience, and urban wage premium

Education, experience, and urban wage premium

Industrial Diversification in Europe: The Differentiated Role of Relatedness

Grid and shake: spatial aggregation and the robustness of regionally estimated elasticities

Contact Info

Product

Resources

About