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Market access and wages: A spatially heterogeneous approach

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  • Paredes, Dusan
  • Iturra, Victor

Abstract

We empirically test the positive relationship between market access and wages stated by New Economic Geography. Contrary to most estimations in other countries, we find evidence of significant spatial heterogeneity of this elasticity across Chilean communities.

Suggested Citation

  • Paredes, Dusan & Iturra, Victor, 2012. "Market access and wages: A spatially heterogeneous approach," Economics Letters, Elsevier, vol. 116(3), pages 349-353.
    • Handle: RePEc:eee:ecolet:v:116:y:2012:i:3:p:349-353
    DOI: 10.1016/j.econlet.2012.03.022
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    16. 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.
    17. Deller, Steven, 2011. "Spatial heterogeneity in the wage curve," Economics Letters, Elsevier, vol. 113(3), pages 231-233.
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    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. Dusan Paredes, 2012. "Spatial wage disparities and the role of spatial labor sorting," Documentos de Trabajo en Economia y Ciencia Regional 28, Universidad Catolica del Norte, Chile, Department of Economics, revised Sep 2012.
    3. Rafael Alvarado & Miguel Atienza, 2014. "The role of market access and human capital in regional wage disparities: Empirical evidence for Ecuador," Documentos de Trabajo en Economia y Ciencia Regional 50, Universidad Catolica del Norte, Chile, Department of Economics, revised Mar 2014.
    4. Li, Guo & Mroz, Thomas A., 2013. "Expected income and labor market choices of US married couples: A locally weighted regression approach," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 985-995.

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    More about this item

    Keywords

    New Economic Geography; Wages; Market access; Geographically weighted regression;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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