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Open AccessJournal ArticleDOI

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

TLDR
In this article, the authors estimate the respective importance of spatial sorting and agglomeration economies in explaining the urban wage premium for workers with different sets of skills, and provide further evidence of spatial density bringing about productivity advantages primarily in contexts when problem-solving and interaction with others are important.
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.

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Book ChapterDOI

The Empirics of Agglomeration Economies

TL;DR: In this article, an integrated framework is proposed to discuss the empirical literature on the local determinants of agglomeration effects. But the most important concerns are about endogeneity at the local and individual levels, the choice of a productivity measure between wages and total-factor productivity, and the roles of spatial scale, firms' characteristics, and functional forms.
Journal ArticleDOI

Industrial Diversification in Europe: The Differentiated Role of Relatedness

TL;DR: In this paper, 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, was investigated.
Journal ArticleDOI

Immigrant Diversity and Economic Performance in Cities

TL;DR: This paper reviewed a growing literature investigating how "immigrant" diversity relates to urban economic performance and argued that the low-hanging fruit in this field has now been picked and lays out a set of open issues that need to be taken up in future studies in order to fulfill the promise of this work.
Journal ArticleDOI

How Local are Spatial Density Externalities? Neighbourhood Effects in Agglomeration Economies

TL;DR: Andersson et al. as discussed by the authors analyzed the geographic scale at which density externalities operate, using geocoded high-resolution data, focused on exogenously determined within-city squares (neighbourhoods) of 1'km2.
Journal ArticleDOI

Which types of relatedness matter in regional growth? Industry, occupation and education

TL;DR: In this article, the authors provide a conceptual discussion of relatedness, which suggests a focus on individuals as a complement to firms and industries, and test the empirical relevance of the main arguments by estimating the effects of related and unrelated variety in education and occupation among employees.
References
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Book

Schooling, Experience, and Earnings

Jacob Mincer
TL;DR: In this article, the authors analyzed the distribution of worker earnings across workers and over the working age as consequences of differential investments in human capital and developed the human capital earnings function, an econometric tool for assessing rates of return and other investment parameters.
Journal ArticleDOI

A Computer Movie Simulating Urban Growth in the Detroit Region

TL;DR: A Computer Movie Simulating Urban Growth in the Detroit Region as discussed by the authors was made to simulate urban growth in the city of Detroit, Michigan, United States of America, 1970, 1970.
Journal ArticleDOI

Wages, Rents, and the Quality of Life

TL;DR: In this paper, the role of wages and rents in allocating workers to locations with various quantities of amenities is discussed, and it is shown that if the amenity is also productive, then the sign of the wage gradient is unclear while the rent gradient is positive.
ReportDOI

The Skill Content of Recent Technological Change: An Empirical Exploration

TL;DR: This paper found that computer capital substitutes for workers in performing cognitive and manual tasks that can be accomplished by following explicit rules, and complements workers in non-routine problem-solving and complex communications tasks.
ReportDOI

Productivity and the Density of Economic Activity

TL;DR: This article found that more than half of the variance of output per worker across states can be explained by differences in the density of economic activity and that a doubling of employment density increases average labor productivity by around 6 percent.
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