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Why do newer cities promise higher wages in Russia?

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  • Skorobogatov, Alexander S.

Abstract

This paper documents the negative relationship between the age of cities and their average wages in Russia and a number of post-Soviet countries. To determine age-related urban characteristics responsible for this relationship, we develop a spatial equilibrium model as a framework to guide the interpretation of the regression estimates. Higher real wages in newer cities reflect both their disadvantages as places for living and their production advantages. The latter are related to their production amenities, higher shares of skilled workers, and more available natural resources. These advantages and disadvantages tend to disappear over time, which gives rise to income convergence.

Suggested Citation

  • Skorobogatov, Alexander S., 2018. "Why do newer cities promise higher wages in Russia?," Journal of Urban Economics, Elsevier, vol. 104(C), pages 16-34.
    • Handle: RePEc:eee:juecon:v:104:y:2018:i:c:p:16-34
    DOI: 10.1016/j.jue.2017.12.003
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    Cited by:

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    3. Alexander S. Skorobogatov, 2021. "The effect of alcohol sales restrictions on alcohol poisoning mortality: Evidence from Russia," Health Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 1417-1442, June.

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