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The spatial extent of agglomeration economies across the wage earnings distribution
Author(s) -
Håkansson Johan,
Isacsson Gunnar
Publication year - 2019
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.12411
Subject(s) - economies of agglomeration , endogeneity , unobservable , economics , earnings , wage , quantile regression , distribution (mathematics) , quantile , instrumental variable , labour economics , econometrics , microeconomics , mathematical analysis , mathematics , accounting
We investigate the spatial extent of agglomeration economies across the wage earnings distribution using economic mass (total employment) in four distance bands around each individual’s establishment in a quantile regression framework. We control for observable and unobservable individual and establishment characteristics. Remaining endogeneity in the model is assessed with a set of instrumental variables. Results indicate a positive effect of economic mass on wage earnings up to 25 km away from the establishment. The spatial extent of agglomeration economies is similar across the wage earnings distribution. However, increases in economic mass shift the wage earnings distribution in a nonsymmetric way.