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Urban wage inequality and economic agglomeration

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  • Yiming Zhou

    (Jiangxi University of Finance and Economics)

Abstract

This paper explores the impact of interplay between transport costs and commuting costs on urban wage inequality and economic distribution within a new economic geography model. As in former studies, workers tend at the same time to agglomerate in order to limit transport costs of manufactured good and to disperse in order to alleviate the burden of urban costs. In this paper, we pay special attention to wages and spot light on how the urban wage inequality is determined by interplay between urban costs and transport costs. We also solve analytically the break points and the sustain points and disclose their relationships with transport costs and commuting costs in a general equilibrium model.

Suggested Citation

  • Yiming Zhou, 2017. "Urban wage inequality and economic agglomeration," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(2), pages 475-494, September.
    • Handle: RePEc:spr:anresc:v:59:y:2017:i:2:d:10.1007_s00168-017-0840-7
    DOI: 10.1007/s00168-017-0840-7
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    Cited by:

    1. Juan Yin & Zhong Yang & Jin Guo, 2022. "Externalities of Urban Agglomerations: An Empirical Study of the Chinese Case," Sustainability, MDPI, vol. 14(19), pages 1-19, September.
    2. Yiming Zhou, 2020. "Heterogeneous firms, urban costs and agglomeration," International Journal of Economic Theory, The International Society for Economic Theory, vol. 16(3), pages 329-348, September.
    3. José M. Gaspar, 2018. "A prospective review on New Economic Geography," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(2), pages 237-272, September.
    4. Yiming Zhou, 2019. "Home market effect, land rent, and welfare," Asia-Pacific Journal of Regional Science, Springer, vol. 3(2), pages 561-580, June.

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    More about this item

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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