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Trade, location, and wages in the United States

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  • Knaap, Thijs

Abstract

This paper estimates a spatial wage structure for the United States.I employ the market-access and supplier-access method of Reddingand Venables (2004), where access is determined using interstate tradedata. Economic geography models predict that state-level wages arecorrelated to this measure, owing to higher levels of demand and betteravailability of intermediate goods in easily accessible regions. Aftercorrecting for omitted-variable bias with exogenous ‘first nature’ regressorsand using the appropriate instruments, I find that the explanatorypower of access-variables is weak in this dataset.
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  • Knaap, Thijs, 2006. "Trade, location, and wages in the United States," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 595-612, September.
    • Handle: RePEc:eee:regeco:v:36:y:2006:i:5:p:595-612
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    14. Gustavsson, Magnus & Jordahl, Henrik, 2006. "Inequality and Trust: Some Inequalities are More Harmful than Others," Working Paper Series 2006:3, Uppsala University, Department of Economics.
    15. Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2009. "Do New Economic Geography agglomeration shadows underlie current population dynamics across the urban hierarchy?," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 445-466, June.
    16. Ottaviano, Gianmarco I.P. & Pinelli, Dino, 2006. "Market potential and productivity: Evidence from Finnish regions," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 636-657, September.
    17. Mardukhi, Jian, 2010. "The General Equilibrium Wage Impact of Trade-Induced Shifts in Industrial Compositions of Employment in Brazilian Cities, 1991-2000," MPRA Paper 25916, University Library of Munich, Germany.
    18. Maria Florencia Granato, 2011. "REGIONAL NEW ECONOMIC GEOGRAPHY (refereed paper)," ERSA conference papers ersa10p747, European Regional Science Association.
    19. Mark D. Partridge, 2010. "The duelling models: NEG vs amenity migration in explaining US engines of growth," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 513-536, August.
    20. Alexander Klein & Nicholas Crafts, 2012. "Making sense of the manufacturing belt: determinants of U.S. industrial location, 1880--1920," Journal of Economic Geography, Oxford University Press, vol. 12(4), pages 775-807, July.
    21. Fingleton, Bernard, 2008. "Competing models of global dynamics: Evidence from panel models with spatially correlated error components," Economic Modelling, Elsevier, vol. 25(3), pages 542-558, May.
    22. Song, Tao & Cieslik, Andrzej, 2020. "The effects of free trade agreements on regional wages in China," Economic Systems, Elsevier, vol. 44(3).
    23. Maarten Bosker & Harry Garretsen, 2010. "Trade costs in empirical New Economic Geography," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 485-511, August.
    24. Hayakawa, Kazunobu, 2009. "Market Access and Intermediate Goods Trade," IDE Discussion Papers 208, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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