The Effects of Agglomeration on Wages: Evidence from the Micro-level

Bernard Fingleton, Simonetta Longhi

Research output: Working paperDiscussion paper

Abstract

This paper estimates individual wage equations in order to test two rival non-nested theories of economic agglomeration, namely New Economic Geography (NEG), as represented by the NEG wage equation and urban economic (UE) theory , in which wages relate to employment density. The paper makes an original contribution by evidently being the first empirical paper to examine the issue of agglomeration processes associated with contemporary theory working with micro-level data, highlighting the role of gender and other individual-level characteristics. For male respondents, there is no significant evidence that wage levels are an outcome of the mechanisms suggested by NEG or UE theory, but this is not the case for female respondents. We speculate on the reasons for the gender difference.
LanguageEnglish
Place of PublicationGlasgow
PublisherUniversity of Strathclyde
Pages1-24
Number of pages25
Volume11
Publication statusPublished - May 2011

Fingerprint

Wages
Agglomeration
New economic geography
Economic theory
Wage equation
Urban economics
Economics
Gender differences

Keywords

  • urban economics
  • new economic geography
  • household panel data

Cite this

Fingleton, B., & Longhi, S. (2011). The Effects of Agglomeration on Wages: Evidence from the Micro-level. (24 ed.) (pp. 1-24). Glasgow: University of Strathclyde.
Fingleton, Bernard ; Longhi, Simonetta. / The Effects of Agglomeration on Wages : Evidence from the Micro-level. 24. ed. Glasgow : University of Strathclyde, 2011. pp. 1-24
@techreport{3683158d39b84b1697771a94b5c22b9b,
title = "The Effects of Agglomeration on Wages: Evidence from the Micro-level",
abstract = "This paper estimates individual wage equations in order to test two rival non-nested theories of economic agglomeration, namely New Economic Geography (NEG), as represented by the NEG wage equation and urban economic (UE) theory , in which wages relate to employment density. The paper makes an original contribution by evidently being the first empirical paper to examine the issue of agglomeration processes associated with contemporary theory working with micro-level data, highlighting the role of gender and other individual-level characteristics. For male respondents, there is no significant evidence that wage levels are an outcome of the mechanisms suggested by NEG or UE theory, but this is not the case for female respondents. We speculate on the reasons for the gender difference.",
keywords = "urban economics, new economic geography, household panel data",
author = "Bernard Fingleton and Simonetta Longhi",
note = "Discussion paper.",
year = "2011",
month = "5",
language = "English",
volume = "11",
pages = "1--24",
publisher = "University of Strathclyde",
edition = "24",
type = "WorkingPaper",
institution = "University of Strathclyde",

}

Fingleton, B & Longhi, S 2011 'The Effects of Agglomeration on Wages: Evidence from the Micro-level' 24 edn, University of Strathclyde, Glasgow, pp. 1-24.

The Effects of Agglomeration on Wages : Evidence from the Micro-level. / Fingleton, Bernard; Longhi, Simonetta.

24. ed. Glasgow : University of Strathclyde, 2011. p. 1-24.

Research output: Working paperDiscussion paper

TY - UNPB

T1 - The Effects of Agglomeration on Wages

T2 - Evidence from the Micro-level

AU - Fingleton, Bernard

AU - Longhi, Simonetta

N1 - Discussion paper.

PY - 2011/5

Y1 - 2011/5

N2 - This paper estimates individual wage equations in order to test two rival non-nested theories of economic agglomeration, namely New Economic Geography (NEG), as represented by the NEG wage equation and urban economic (UE) theory , in which wages relate to employment density. The paper makes an original contribution by evidently being the first empirical paper to examine the issue of agglomeration processes associated with contemporary theory working with micro-level data, highlighting the role of gender and other individual-level characteristics. For male respondents, there is no significant evidence that wage levels are an outcome of the mechanisms suggested by NEG or UE theory, but this is not the case for female respondents. We speculate on the reasons for the gender difference.

AB - This paper estimates individual wage equations in order to test two rival non-nested theories of economic agglomeration, namely New Economic Geography (NEG), as represented by the NEG wage equation and urban economic (UE) theory , in which wages relate to employment density. The paper makes an original contribution by evidently being the first empirical paper to examine the issue of agglomeration processes associated with contemporary theory working with micro-level data, highlighting the role of gender and other individual-level characteristics. For male respondents, there is no significant evidence that wage levels are an outcome of the mechanisms suggested by NEG or UE theory, but this is not the case for female respondents. We speculate on the reasons for the gender difference.

KW - urban economics

KW - new economic geography

KW - household panel data

M3 - Discussion paper

VL - 11

SP - 1

EP - 24

BT - The Effects of Agglomeration on Wages

PB - University of Strathclyde

CY - Glasgow

ER -

Fingleton B, Longhi S. The Effects of Agglomeration on Wages: Evidence from the Micro-level. 24 ed. Glasgow: University of Strathclyde. 2011 May, p. 1-24.