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Economic geography determinants of spatial wage disparities in South Africa: Evidence from a firm‐level panel

Author

Listed:
  • Sanduku Mulumba
  • Lawrence Edwards
  • David Fadiran

Abstract

In this paper, we use the new economic geography (NEG) framework to estimate the extent to which spatial wage disparities in the South African manufacturing sector are an outcome of economic forces such as market access. To test the relationship, we use the anonymized tax data on employers and employees made available by the South African Revenue Service and National Treasury in collaboration with UNU-WIDER. We first document the key stylized facts that characterize the spatial distribution of wages across regions in South Africa using exploratory spatial data analysis (ESDA) techniques.

Suggested Citation

  • Sanduku Mulumba & Lawrence Edwards & David Fadiran, 2024. "Economic geography determinants of spatial wage disparities in South Africa: Evidence from a firm‐level panel," WIDER Working Paper Series wp-2024-52, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2024-52
    as

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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2024-52-economic-geography-determinants-spatial-wage-disparities-South-Africa.pdf
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    References listed on IDEAS

    as
    1. Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon & Sébastien Roux, 2010. "Estimating Agglomeration Economies with History, Geology, and Worker Effects," NBER Chapters, in: Agglomeration Economics, pages 15-66, National Bureau of Economic Research, Inc.
    2. Fatih Celebioglu & Sandy Dall’erba, 2010. "Spatial disparities across the regions of Turkey: an exploratory spatial data analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(2), pages 379-400, October.
    3. Reinhold Kosfeld & Hans-Friedrich Eckey, 2010. "Market access, regional price level and wage disparities: the German case," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 30(2), pages 105-128, September.
    4. Cecile Gaubert & Rebecca Diamond, 2022. "Spatial Sorting and Inequality," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 795-819, August.
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    More about this item

    Keywords

    Wage differentials; Spatial econometrics; Regional economics; Income distribution; Manufacturing industries; Wages; Spatial inequality; Manufacturing firms; Estimation theory;
    All these keywords.

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