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AGGLOMERATION EFFECTS IN COLOMBIA
Author(s) -
Duranton Gilles
Publication year - 2016
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12239
Subject(s) - complementarity (molecular biology) , economics , economies of agglomeration , externality , human capital , population , labour economics , economic geography , microeconomics , economic growth , genetics , demography , sociology , biology
I estimate an elasticity of wages with respect to city population of about 5 percent for Colombian cities. This finding is robust to a number of econometric concerns. The second main finding is a negative effect of market access on wages. Third main finding regards stronger agglomeration effects in the informal sector. In turn, this explains a range of other negative findings, including only weak evidence in favor of human capital externalities, no evidence of a complementarity between cities and skills, and an absence of learning effects. I do not find measurable effects of roads or amenities on wages either.