THE EFFECTS OF AGGLOMERATION ON WAGES: EVIDENCE FROM THE MICRO‐LEVEL

This paper estimates individual wage equations to test two rival non‐nested theories of economic agglomeration, namely New Economic Geography (NEG), as represented by the NEG wage equation and urban economic (UE) theory, in which wages relate to employment density. In the U.K. context, we find that for male respondents, there is no significant evidence that wage levels are an outcome of the mechanisms suggested by NEG or UE theory, but this is not the case for female respondents. We speculate on the reasons for the gender difference.     

The Impact of a Customs Union with the European Union on Internal Migration in Turkey

Abstract The impact of the recent Customs Union (CU) agreement between Turkey and the European Union on internal migration is studied using an intra‐industry trade Computable General Equilibrium (CGE) model with intersectoral capital mobility under two alternative specifications for the labor market: the traditional Harris‐Todaro approach and the existence of a “wage curve” in the urban sector. Under both specifications, the numerical results show that the CU is welfare enhancing and causes a reduction of the urban‐rural wage gap as suggested by theoretical studies. At the same time, it leads to rural‐to‐urban migration and raises the capital rent, results that are counter intuitive with respect to the dual economy literature. Furthermore, the rise in formal labor demand and the migration response to the CU have not resulted in an increase in urban unemployment (i.e. the “Todaro paradox”), but rather to a fall in the unemployment pool. The study also shows that the Bhagwati‐Srinivasan proposal of maximizing welfare by uniformly subsidizing the entire labor market is impracticable, especially if the high wage union sector can negotiate employment conditions.     

DISTANCE FROM URBAN AGGLOMERATION ECONOMIES AND RURAL POVERTY*

ABSTRACT Despite strong national economic growth and significant poverty reduction during the late 1990s, high poverty persisted in remote rural areas. This study uses a geographical information system county database to examine the nexus between rural U.S. poverty and remoteness. We find that poverty rates increase with greater rural distances from successively larger metropolitan areas (MAs). We explain this outcome as arising from the attenuation of urban agglomeration effects at greater distances and incomplete commuting and migration responses to lower labor demand in rural areas. One implication is that remote areas may particularly experience greater reductions in poverty from place‐based economic development policies.     

AGGLOMERATION AND REGIONAL COSTS OF LIVING*

ABSTRACT Standard models of the new economic geography predict that costs of living are lower in the core than in the periphery. But in reality they tend to be higher in agglomeration areas, mainly because of regional differences in housing costs. In this paper, we add a home goods sector to the seminal NEG model of Krugman (1991) . We show that a core–periphery structure can endogenously emerge in which the core is the more expensive area. This result has an important normative implication. Since higher costs of living imply falling real wages if there is no nominal wage premium, it is not desirable for everybody to live in the core region.     

The Spatial Distribution of Wages: Estimating the Helpman‐Hanson Model for Germany

Abstract.  Using German district data we estimate the structural parameters of a new economic geography model as developed by Helpman (1998) and Hanson (1998 , 2001a ). The advantage of the Helpman‐Hanson model is that it incorporates the fact that agglomeration of economic activity increases the prices of local (nontradable) services, like housing. This model thereby provides an intuitively appealing spreading force that allows for less extreme agglomeration patterns than predicted by the bulk of new economic geography models. Generalizing the Helpman‐Hanson model, we also analyze the implications for the spatial distribution of wages once the assumption of real wage equalization is dropped. If we no longer assume real wage equalization we find support for a spatial wage structure as well as for the relevance of the structural parameters of the theoretical model.     

Regional Wage Rigidity: The European Union and United States Compared

In recent years it has been pointed out that regional unemployment disparities are much more entrenched across member states of the European Union (E.U.) than they are in the U.S. A 'conventional wisdom' has emerged to the effect that this difference is due in part to the greater degree of wage rigidity in E.U. regions. In this paper we explore this issue by estimating short run and long run real wage (in)flexibility for the regions in five core E.U. countries (Germany, France, Italy, the United Kingdom, and the Netherlands) and for the U.S. states for the period 1976–1994. We find that real wage (in)flexibility varies across regions both in the E.U. and the U.S., but that, on average, regional wages are no less flexible in E.U. core regions than in U.S. states. The paper also examines some of the possible correlates ofregional variations in wage (in)flexibility.     

Does size of local labour markets affect wage inequality? a rank-size rule of income distribution

The questions addressed in this paper are: (i) does wage inequalityincrease with local population size, and if so, (ii) what arepossible factors behind this increase? In a cross-section analysisof Swedish local labour markets using unique full populationdata, the article shows that urban scale, i.e. size of localpopulation, has significant positive effects on wage inequality.Testing for potential explanations, labour market diversification,human capital, migration, age structure and employment are shownto be significantly associated with inequality. Given theseeffects, the article raises the question of how to understandand incorporate scale effects into models of long-term changein wage inequality.     

Urbanization patterns: European versus less developed countries

This paper develops a model in which the interaction between transport costs, increasing returns to scale, and labor migration across sectors and regions creates a tendency for urban agglomeration. Demand from rural areas favors urban dispersion. European urbanization took place mainly in the 19th century, with higher costs of spatial interaction, weaker economies of scale, and a less-elastic supply of labor to the urban sector than in less developed countries (LDCs) today. These factors could help explain why primate cities dominate in LDCs, whereas a comparatively small share of urban population lives in Europe's largest cities.     

北京房地产中介空间格局演化特征及驱动因素分析

本文基于微观企业数据,采用泰森多边形、核密度及空间自相关方法,多尺度考察2001-2010年北京房地产中介门店空间格局演化特征,通过构建地理加权回归模型（GWR）,探究2010年房地产中介空间格局驱动因素。研究表明：①房地产中介集中分布在城六区,数量增速最快功能区是城市发展新区。②空间格局不均衡性增大,空间集聚态势加强。③集聚主核心点出现由"东城"向"朝阳"方向的东推位移,集聚程度加深,主核心区团块面积扩大,次级核心点增多,"两轴、两带、多中心"基本版图形成。④空间集聚现象明显,热点区域扩张,但始终集中在区域中心。⑤驱动效应最大的因素为常住人口,多种驱动因素效应均比较强的街区（乡镇）基本上属于各区县经济水平相对发达的区域。此外,政府政策对其影响也较大。     

Alonso and the Scaling of Urban Profiles

How urban characteristics change with total population, their scaling behavior, has become an important research field since one needs to better understand the challenges of urban densification. Yet urban scaling research is largely disconnected from intra-urban structure, and this seriously limits its operationalization. In contrast, the monocentric model of Alonso provides a residential choice-based theory to urban density profiles. However, dedicated comparative static analyses do not completely solve how the model scales with population. This article bridges this gap by simultaneously introducing power laws for land, income and transport cost in the Alonso model. We show that the equilibrium urban structure of this augmented model matches recent empirical findings about the scaling of European population density profiles and satisfactorily represents European cities. This result is however not compatible with the observed scaling power of housing land profiles, and challenges current empirical understanding of wage and transport cost elasticities with population. Our results call for revisiting theories about land development and housing processes as well as the empirics of agglomeration benefits and transport costs.     

京津冀地区城市间行业工资差异及影响因素分析

基于2005-2012年京津冀各城市工资及其它社会经济数据,探讨了市场潜能、产业集聚、人力资本、制度改革等因素对城市间各行业工资差异的影响。结果表明：①市场潜能对各行业工资水平的增长均有一定的促进作用。②除消费性服务业外,各类产业集聚对地区平均工资水平的提高均有一定的促进作用,但制造业集聚带来的拥挤效应也已开始体现;生产性服务业集聚能够带动公共性服务业工资的提升,而公共性服务业缺乏对生产性服务业的反哺;产业集聚对消费性服务业工资缺乏带动作用。③在控制变量方面,交通基础设施对工资水平的带动作用逐渐弱化;科技投入、人力资本对服务业工资水平的带动作用较高,而对制造业影响较弱;市场经济体制改革对工资水平的带动作用仍未体现;政府市场干预能力的提高仅带动了公共性服务业工资的提升,而外向度的提升则仅对公共性服务业缺乏带动作用。     

Regional labor markets and the household migration decision

"The current work extends the modeling of the household migration decision to take into account location-specific influences and relates these to regional wage differentials. This allows for more complete analysis of real wage gains or losses associated with migration and inferences regarding the nature of equilibrium or disequilibrium wage differentials between regions." Data are from the Michigan Panel Study of Income Dynamics for the period 1976-1978. "The results indicate systematic and often substantial influences of household location on the nominal wage and on both job and residence mobility. Based on these findings, comparisons of wage growth patterns are made for those changing jobs and region of residence status. Although compared to other households the wage growth of these migrants is on average lower before migration and higher after migration, the analysis provides no support for arguments that nominal regional wage differentials reflect systematic ordering of real wage differentials. This finding suggests that real wage gains are closely tied to the interregional migration decision but are not related to regional nominal wage differentials in a simple fashion."     

Do Urban Agglomeration Effects and Household Amenities have a Skill Bias?*

There are several hypotheses why urban scale affects wages. Most focus on agglomeration economies that increase labor demand, especially for high‐skilled workers (e.g., dynamic externalities stress knowledge transfers, and imply the urban wage gap favors skilled workers). Others stress urban amenities that increase labor supply and decrease wages. Amenities should have a stronger influence on affluent households if they are normal goods. By examining whether urban‐scale affects net returns to education, it can be determined whether skilled workers are influenced more by urban productivity or amenities. Empirical results suggest net returns to education decline with urban scale, implying a key role for urban amenities in affecting skilled workers.     

Urban Planning in Italy: The Future of Urban General Plan and Governance

This article aims to highlight and, whenever possible, demonstrate that the urban general plan is still the instrument of the utmost importance to trigger and steer urban transformations. Within the current Italian context, the article examines the characteristics, contradictions, weaknesses and opportunities of urban planning set of rules and practices and tries to propose concrete answers to questions and issues strictly connected that affect the municipality's urban planning: how to manage and govern a contemporary metropolis or city agglomeration, the concerns associated with overlapping jurisdictions and different rules for various hierarchical administrative levels, the costs of social and common services, the need to include in the urban plan the possible use of European Union Structural Funds, the real estate market affecting new development and urban regeneration programmes and investments. All these aspects should be included in a unifying and strong planning instrument, the urban plan, which could address and steer effectively the urban planning policies and their governance.     

URBAN UNEMPLOYMENT AND THE SPATIAL STRUCTURE OF LABOR MARKETS: AN EXAMINATION OF THE “TODARO PARADOX” IN A SPATIAL CONTEXT*

ABSTRACT The Todaro paradox and the effects of job creation in urban areas will be re-examined in our spatial model in which the radius of the labor market is endogenously determined by the rational choices of workers. The travel cost of workers plays a crucial role in the choice between two different types of response, migration or commuting. By considering travel costs, we find that the Todaro paradox can be applied to developed, as well as developing, countries. Job creation in urban areas can produce a paradoxical increase in urban unemployment in developed countries, because the low marginal cost of travel will significantly increase the radius of the urban labor market and create new labor supply without migration.     

The determinants of labor migration in Egypt

The factors which affect individual decisions with regard to geographic movement in Egypt are examined and the magnitude in which each factor exerts its influence on aggregate geographic labor supply adjustments is estimated. The spatial unit used in the study is the administrative region, of which there are 25. No effort is made to esimate the impact which migration has had on the origin or destination region. The migrant will presumably choose that destination which, given his information, the migrant thinks will be best. The model which is employed attempts to explain gross interregional migration without the explicit introduction of an individual decision function. Rather, migration is related to certain aggregate proxy variables. Among the independent variables employed in the analysis are (origin and destination) income, education, urbanization, and population. The other explanatory variable used is the distance between region i and region j. The migration measure employed refers to cumulative male migration which occurred prior to 1960; the independent variables are defined for a given point in time (1960). The independent variables explain a reasonably large percentage of the variance in migration between regions in Egypt. All variables were significant at the 5% level or better. The findings indicate that distance acts as an important impediment to migration. Migration is away from low wage and toward high wage regions, which may have contributed to a narrowing of regional wage differentials. Migrants are attracted to regions which have large populations and to regions which have a large percentage of urban to total population. A tendency exists for migrants to come from regions with large populations. There is also some tendency for migrants to come from regions which have a relatively large urban population. Migrants do not appear to come from regions with high educational levels.     

The spatial extent of agglomeration economies across the wage earnings distribution

We investigate the spatial extent of agglomeration economies across the wage earnings distribution using economic mass (total employment) in four distance bands around each individual’s establishment in a quantile regression framework. We control for observable and unobservable individual and establishment characteristics. Remaining endogeneity in the model is assessed with a set of instrumental variables. Results indicate a positive effect of economic mass on wage earnings up to 25 km away from the establishment. The spatial extent of agglomeration economies is similar across the wage earnings distribution. However, increases in economic mass shift the wage earnings distribution in a nonsymmetric way.     

Migration,Frictional Unemployment,and Welfare‐Improving Labor Policies*

Abstract. Studies have suggested that there exists job search and recruiting friction in urban areas. This paper constructs a two‐sector (rural and urban) model involving this factor and investigates how it affects migration and what the optimal policies should be. An analysis shows that frictional urban unemployment brings about intersector wage differentials and that an economy almost always has distortion in the absence of government intervention. Tax and subsidy policies that remove the distortion are explored. Setting urban wages appropriately is also shown to attain the optimum. Finally, we explore the criterion to judge whether changing urban wages as a policy, such as the minimum wage law, enhances social welfare.     

The Size Distribution of Cities and Determinants of City Growth in Turkey

The aim of this study is two-fold. Firstly, this study examines the size distribution of cities by using Zipf's law. The second objective of this study is to investigate the effects of determinants of urban growth in Turkey by using the data for the 1980–2007 time period. The main findings of the study show that there is some evidence that Zipf's law holds in Turkey. Moreover, according to the rank-minus-half rule, the results suggest stronger support for Zipf's law in size distribution of the cities. Furthermore, the regression results indicate that fertility rate, location of the city, migration, agglomeration in services and specialization in manufacturing industry have positive impact, whereas schooling rate has a negative effect on growth of the urban population regarding Turkey.     

长江三角洲城市旅游空间结构形成的产业机理——基于旅游企业空间区位选择视角

长江三角洲城市旅游企业空间布局状况对城市旅游增长极与城市旅游核心-边缘空间结构的形成具有重要影响。长江三角洲城市旅游空间一体化发展及城市旅游核心区与边缘区的协同发展目标的实现,旅游企业空间区位选择费用最小化行为是一种重要的实现推动力。旅游企业在城市旅游核心区或边缘区的布局是旅游企业在固定成本与旅游接待人次两种因素之间博弈的过程。旅游企业选择在城市旅游空间集聚区还是在非集聚区布局取决于在集聚区获得集聚经济的程度、集聚区产生的集聚不经济程度及非集聚区土地等成本的差异等。