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Rendements croissants et structure spatiale des salaires en France

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  • Sylvain Barde

Abstract

New Economic Geography presents increasing returns to agglomeration as the central explanation behind the concentration of economic activity. Within this framework, returns to scale are caused by a preference for variety in consumption which is better satisfied by agglomeration. The estimation of the size of these effects remains, however, a standing issue in the field. The focus of this study is to investigate the presence of increasing returns to agglomeration in the French spatial structure of wages using the methodology developed in Fingleton (2003) and initially used in the UK. The central finding is the statistically significant presence of such returns to scale for France, of a size comparable to the one found for the UK in the original study. Compared to Fingleton?s original work, a further results show that the results are robust to changes in the specification of the spatial weights matrix, and that taking into account a larger time-dimension leads to an improvement of the significance and the diagnostic tests. JEL classification: C21, R12, R23.

Suggested Citation

  • Sylvain Barde, 2008. "Rendements croissants et structure spatiale des salaires en France," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 179-201.
    • Handle: RePEc:cai:reofsp:reof_104_0179
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    References listed on IDEAS

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    1. Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2006. "Putting new economic geography to the test: Free-ness of trade and agglomeration in the EU regions," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 613-635, September.
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    More about this item

    Keywords

    spatial econometrics; increasing return;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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