IDEAS home Printed from https://ideas.repec.org/a/bla/jregsc/v56y2016i4p596-614.html
   My bibliography  Save this article

Cities, Wages, And The Urban Hierarchy

Author

Listed:
  • Juan Soto
  • Dusan Paredes

Abstract

We present evidence regarding the unequal spatial distribution of population in the north and south of Chile which implies that even when geographical distances to the main urban center are similar, the distances in a context of urban hierarchy are completely different. Given this economic geography, we postulate that Central Place Theory provides a better understanding for the study of city size wage gap in Chile. In order to test our hypothesis, we construct five tiers of urban hierarchy using the 2002 National Census and then contrast the effect generated by the urban hierarchy on worker wages using nine waves of the National Socioeconomic Characterization Survey (CASEN).
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Juan Soto & Dusan Paredes, 2016. "Cities, Wages, And The Urban Hierarchy," Journal of Regional Science, Wiley Blackwell, vol. 56(4), pages 596-614, September.
  • Handle: RePEc:bla:jregsc:v:56:y:2016:i:4:p:596-614
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/jors.2016.56.issue-4
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bernard Fingleton & Simonetta Longhi, 2013. "The Effects Of Agglomeration On Wages: Evidence From The Micro-Level," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 443-463, August.
    2. Roberta Capello, 2000. "The City Network Paradigm: Measuring Urban Network Externalities," Urban Studies, Urban Studies Journal Limited, vol. 37(11), pages 1925-1945, October.
    3. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, April.
    4. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    5. Partridge, Mark D. & Rickman, Dan S. & Ali, Kamar & Olfert, M. Rose, 2009. "Agglomeration spillovers and wage and housing cost gradients across the urban hierarchy," Journal of International Economics, Elsevier, vol. 78(1), pages 126-140, June.
    6. Suzanne Kok & Bas ter Weel, 2014. "Cities, Tasks, And Skills," Journal of Regional Science, Wiley Blackwell, vol. 54(5), pages 856-892, November.
    7. Joanna P. Ganning & Kathy Baylis & Bumsoo Lee, 2013. "Spread And Backwash Effects For Nonmetropolitan Communities In The U.S," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 464-480, August.
    8. Yankow, Jeffrey J., 2006. "Why do cities pay more? An empirical examination of some competing theories of the urban wage premium," Journal of Urban Economics, Elsevier, vol. 60(2), pages 139-161, September.
    9. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent & Roux, Sébastien, 2012. "Sorting and local wage and skill distributions in France," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 913-930.
    10. repec:hal:pseose:halshs-00754585 is not listed on IDEAS
    11. In Kwon Park & Burkhard von Rabenau, 2011. "Disentangling Agglomeration Economies: Agents, Sources, And Spatial Dependence," Journal of Regional Science, Wiley Blackwell, vol. 51(5), pages 897-930, December.
    12. Anping Chen & Mark D. Partridge, 2013. "When are Cities Engines of Growth in China? Spread and Backwash Effects across the Urban Hierarchy," Regional Studies, Taylor & Francis Journals, vol. 47(8), pages 1313-1331, September.
    13. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171, Elsevier.
    14. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-342, April.
    15. Dumond, J Michael & Hirsch, Barry T & Macpherson, David A, 1999. "Wage Differentials across Labor Markets and Workers: Does Cost of Living Matter?," Economic Inquiry, Western Economic Association International, vol. 37(4), pages 577-598, October.
    16. Henderson, J. Vernon, 1986. "Efficiency of resource usage and city size," Journal of Urban Economics, Elsevier, vol. 19(1), pages 47-70, January.
    17. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2008. "Spatial wage disparities: Sorting matters!," Journal of Urban Economics, Elsevier, vol. 63(2), pages 723-742, March.
    18. Thomas Kemeny & Michael Storper, 2012. "The Sources Of Urban Development: Wages, Housing, And Amenity Gaps Across American Cities," Journal of Regional Science, Wiley Blackwell, vol. 52(1), pages 85-108, February.
    19. Mark D. Partridge & Dan S. Rickman, 2008. "Distance From Urban Agglomeration Economies And Rural Poverty," Journal of Regional Science, Wiley Blackwell, vol. 48(2), pages 285-310, May.
    20. Gilles Duranton, 2016. "Agglomeration Effects In Colombia," Journal of Regional Science, Wiley Blackwell, vol. 56(2), pages 210-238, March.
    21. Kim, Sunwoong, 1989. "Labor Specialization and the Extent of the Market," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 692-705, June.
    22. Aroca, Patricio, 2001. "Impacts and development in local economies based on mining: : the case of the Chilean II region," Resources Policy, Elsevier, vol. 27(2), pages 119-134, June.
    23. Dusan Paredes Araya & Victor Iturra Rivera, 2013. "Substitution bias and the construction of a spatial cost of living index," Papers in Regional Science, Wiley Blackwell, vol. 92(1), pages 103-117, March.
    24. Yorgos Y. Papageorgiou, 2014. "Population Density In A Central-Place System," Journal of Regional Science, Wiley Blackwell, vol. 54(3), pages 450-461, June.
    25. Suzanne Kok & Bas ter Weel, 2014. "Cities, Tasks and Skills," CPB Discussion Paper 269.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    26. Matthias Wrede, 2015. "Wages, Rents, Unemployment, And The Quality Of Life: A Consistent Theory‐Based Measure," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 609-625, September.
    27. Berdegué, Julio A. & Carriazo, Fernando & Jara, Benjamín & Modrego, Félix & Soloaga, Isidro, 2015. "Cities, Territories, and Inclusive Growth: Unraveling Urban–Rural Linkages in Chile, Colombia, and Mexico," World Development, Elsevier, vol. 73(C), pages 56-71.
    28. Suzanne Kok & Bas ter Weel, 2014. "Cities, Tasks and Skills," CPB Discussion Paper 269, CPB Netherlands Bureau for Economic Policy Analysis.
    29. López, Esteban & Aroca, Patricio, 2012. "Estimación de la inflación regional de los precios de la vivienda en Chile," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(315), pages .601-630, julio-sep.
    30. Dusan Paredes, 2011. "A methodology to compute regional housing price index using matching estimator methods," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(1), pages 139-157, February.
    31. Dusan Paredes, 2013. "The Role of Human Capital, Market Potential and Natural Amenities in Understanding Spatial Wage Disparities in Chile," Spatial Economic Analysis, Taylor & Francis Journals, vol. 8(2), pages 154-175, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Victor Iturra, 2018. "Amenity Decomposition: The Role Played by Firms and Workers in Explaining Spatial Wage Differences in Chile," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 109(4), pages 542-560, September.
    2. Craig Wesley Carpenter & Scott Loveridge, 2019. "A spatial model of growth relationships and Latino-owned business," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(3), pages 541-557, December.
    3. Julio A. Berdegué & Tatiana Hiller & Juan Mauricio Ramírez & Santiago Satizábal & Isidro Soloaga & Juan Soto & Miguel Uribe & Olga Vargas, 2019. "Delineating functional territories from outer space," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-24, December.
    4. Victor Iturra & Mauricio Sarrias, 2023. "Amenities and individual heterogeneity in the return to schooling," Letters in Spatial and Resource Sciences, Springer, vol. 16(1), pages 1-15, December.
    5. Lufin, Marcelo & Soto-díaz, Juan, 2022. "Technology, geography, and diversification in a small mineral economy," LSE Research Online Documents on Economics 115013, London School of Economics and Political Science, LSE Library.
    6. Niclas Lavesson, 2017. "When And How Does Commuting To Cities Influence Rural Employment Growth?," Journal of Regional Science, Wiley Blackwell, vol. 57(4), pages 631-654, September.
    7. Oyarzo, Mauricio & Paredes, Dusan, 2019. "Revisiting the link between resource windfalls and subnational crowding out for local mining economies in Chile," Resources Policy, Elsevier, vol. 64(C).
    8. Andrés Vallone & Coro Chasco, 2020. "Spatiotemporal methods for analysis of urban system dynamics: an application to Chile," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(2), pages 421-454, April.
    9. Juan Soto & Milena Vargas & Julio A. Berdegué, 2018. "How Large Are the Contributions of Cities to the Development of Rural Communities? A Market Access Approach for a Quarter Century of Evidence from Chile," Documentos de Trabajo 17060, The Latin American and Caribbean Economic Association (LACEA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matthias Wrede, 2013. "Heterogeneous skills and homogeneous land: segmentation and agglomeration," Journal of Economic Geography, Oxford University Press, vol. 13(5), pages 767-798, September.
    2. Daniel Heuermann & Benedikt Halfdanarson & Jens Suedekum, 2010. "Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations," Urban Studies, Urban Studies Journal Limited, vol. 47(4), pages 749-767, April.
    3. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    4. Marianna Belloc & Paolo Naticchioni & Claudia Vittori, 2023. "Urban wage premia, cost of living, and collective bargaining," Journal of Economic Geography, Oxford University Press, vol. 23(1), pages 25-50.
    5. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2008. "Spatial wage disparities: Sorting matters!," Journal of Urban Economics, Elsevier, vol. 63(2), pages 723-742, March.
    6. Niebuhr, Annekatrin, 2016. "Benefits of dense labour markets - Evidence from transitions to employment in Germany," VfS Annual Conference 2016 (Augsburg): Demographic Change 145715, Verein für Socialpolitik / German Economic Association.
    7. Gustavo A. García, 2019. "Agglomeration economies in the presence of an informal sector: the Colombian case," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(2), pages 355-388.
    8. Galster, George C. & Osland, Liv, 2024. "Educational and gender heterogeneity of the rural-urban earnings premium: New evidence from Norway," Regional Science and Urban Economics, Elsevier, vol. 105(C).
    9. J. Vernon Henderson & Sebastian Kriticos, 2018. "The Development of the African System of Cities," Annual Review of Economics, Annual Reviews, vol. 10(1), pages 287-314, August.
    10. C. Duvivier & S. Li & M.-F. Renard, 2013. "Are workers close to cities paid higher nonagricultural wages in rural China?," Applied Economics, Taylor & Francis Journals, vol. 45(30), pages 4308-4322, October.
    11. William C. Strange, 2009. "Viewpoint: Agglomeration research in the age of disaggregation," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 1-27, February.
    12. repec:zbw:bofrdp:2012_017 is not listed on IDEAS
    13. Elvery, Joel A., 2010. "City size and skill intensity," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 367-379, November.
    14. Graham, Daniel J. & Melo, Patricia C., 2009. "Agglomeration economies and labour productivity: evidence from longitudinal worker data for GB's travel-to-work areas," LSE Research Online Documents on Economics 33268, London School of Economics and Political Science, LSE Library.
    15. Giordano Mion & Paolo Naticchioni, 2009. "The spatial sorting and matching of skills and firms," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 28-55, February.
    16. Penelope B. Prime & Donald Grimes & Mary Beth Walker, 2016. "Exploring Wage Determination by Education Level," Economic Development Quarterly, , vol. 30(3), pages 191-202, August.
    17. Francis, Bill B. & Hasan, Iftekhar & John, Kose & Waisman, Maya, 2016. "Urban Agglomeration and CEO Compensation," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 51(6), pages 1925-1953, December.
    18. Elsie L. Echeverri-Carroll & Sofia G. Ayala, 2011. "Urban Wages: Does City Size Matter?," Urban Studies, Urban Studies Journal Limited, vol. 48(2), pages 253-271, February.
    19. Di Addario, Sabrina & Patacchini, Eleonora, 2008. "Wages and the City. Evidence from Italy," Labour Economics, Elsevier, vol. 15(5), pages 1040-1061, October.
    20. K. Bruce Newbold & W. Mark Brown, 2015. "The Urban–Rural Gap In University Attendance: Determinants Of University Participation Among Canadian Youth," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 585-608, September.
    21. Juan Soto & Milena Vargas & Julio A. Berdegué, 2018. "How Large Are the Contributions of Cities to the Development of Rural Communities? A Market Access Approach for a Quarter Century of Evidence from Chile," Documentos de Trabajo 17060, The Latin American and Caribbean Economic Association (LACEA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jregsc:v:56:y:2016:i:4:p:596-614. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.