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The spatial extent of agglomeration economies across the wage earnings distribution

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  • Johan Håkansson
  • Gunnar Isacsson

Abstract

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.

Suggested Citation

  • Johan Håkansson & Gunnar Isacsson, 2019. "The spatial extent of agglomeration economies across the wage earnings distribution," Journal of Regional Science, Wiley Blackwell, vol. 59(2), pages 281-301, March.
    • Handle: RePEc:bla:jregsc:v:59:y:2019:i:2:p:281-301
    DOI: 10.1111/jors.12411
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    Cited by:

    1. Jordy Meekes & Wolter H. J. Hassink, 2023. "Endogenous local labour markets, regional aggregation and agglomeration economies," Regional Studies, Taylor & Francis Journals, vol. 57(1), pages 13-25, January.
    2. Burhan Can Karahasan, 2024. "Do New Firms Boost Local Innovation? Evidence From Turkey," International Regional Science Review, , vol. 47(4), pages 509-560, July.
    3. Leandro Batista Duarte & Raul da Mota Silveira Neto & Diego Firmino Costa da Silva, 2023. "The relevance of job accessibility to labour market outcomes: Evidence for the São Paulo metropolitan region," Urban Studies, Urban Studies Journal Limited, vol. 60(16), pages 3233-3251, December.

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