Complexities in the spatial scope of agglomeration economies

This paper argues that the spatial scope of agglomeration economies is more complex than is often assumed in the literature. We provide insight into this issue by showing that agglomeration on short distances (<5 km) does not significantly affect wages, whereas it has a significant and positive effect on medium distances (5–10 km). This effect attenuates rapidly across geographic space, becoming insignificant after 40–80 km. We offer several explanations for this observed distance decay pattern. The results do not imply, however, that nearby agglomeration is irrelevant to the wage formation: only highly urbanized areas benefit from agglomeration on longer distances. Furthermore, this article finds no evidence that foreign economic mass affects wages in the Netherlands, which suggests that national borders are still a substantial barrier for economic interaction.     

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 HETEROGENEITY IN WAGE DISTRIBUTIONS: EVIDENCE FROM SPAIN*

ABSTRACT Regional differences in real wages have been shown to be both large and persistent in the United States and the U.K., as well as in the economies of other countries. Empirical evidence suggests that wage differentials adjusted for the cost of living cannot only be explained by the unequal spatial distribution of characteristics determining earnings. Rather, average wage gap decomposition reveals the important contribution made by regional heterogeneity in the price assigned to these characteristics. This paper proposes a method for assessing regional disparities in the entire wage distribution and for decomposing the effect of differences across regions in the endowments and prices of the characteristics. The hypothesis forwarded is that the results from previous studies obtained by comparing average regional wages may be partial and nonrobust. Empirical evidence from a matched employer–employee dataset for Spain confirms marked differences in wage distributions between regions, which do not result from worker and firm characteristics but from the increasing role of regional differences in the return to human capital.     

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.     

Population,light, and the size distribution of cities

We provide new insights on the city size distribution of countries around the world. Using more than 10,000 cities delineated via geospatial data and a globally consistent city identification scheme, we investigate distributional shapes in all countries. In terms of population, we find that Zipf's law holds for many, but not all, countries. Contrasting the distribution of population with the distribution of economic activity, measured by nighttime lights, across cities we shed light on the globally variant magnitude of agglomeration economies. Deviations from Zipf's law are to a large extent driven by an undue concentration in the largest cities. They benefit from agglomeration effects which seem to work through area rather than through density. Examining the cross‐country heterogeneity in the city size distribution, our model selection approach suggests that historical factors play an important role, in line with the time of development hypothesis.     

Agglomeration economies and productivity differences in US cities

Plant-level data from the Longitudinal Research Database ofthe US Bureau of the Census are employed to estimate the impactof agglomeration economies on industry productivity across USmetropolitan areas. This analysis seeks to remedy three shortcomingsof previous empirical studies of agglomeration economies: relianceon aggregate spatial or sectoral data; lack of attention tospatial dependence in data; and representation of agglomerationeconomies with vague proxies such as city-size. We show howa number of establishment-, industry-, and city-specific factorsinfluence labor productivity across US cities, and we pay particularattention to separating the influence of different kinds ofagglomeration economies on firm efficiency. Here we follow Marshall'sPrinciples of Economics in examining the spatial concentrationof input–output linkages, the character of local laborpools and embodied technological spillovers.     

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.     

基于L-3D方法的云南省物流经济空间格局研究

为科学分析物流经济空间格局,基于经济地理学3D理论的密度(density)、距离(distance)和分割(division)框架,建立了物流经济空间格局的L-3D分析体系,利用地理集中度、物流经济联系强度及区位商等测度指标,分析了云南省物流经济空间格局的密度、距离及分割特征。结果表明:云南省物流经济密度的空间分异特征显著,呈现以昆明为中心的横纵扩散模式,外圈物流经济明显薄弱;物流经济空间距离呈现中心-通道发展模式,滇中城市群发展优势明显,西部边界物流经济距离较大;物流经济分割特征体现于昆明的区位商值较低,滇中城市群物流经济发展差异显著,以昆明为基准,大理及其周边地区分割严重。     

European Corridors as Carriers of Dynamic Agglomeration Externalities?

Transport corridors are viewed as a promising way forward in European Union (EU) transport policy, assumed to contribute positively to regional economic development. However, the validity of this assumption is not evident. The aim of this paper is to empirically test whether agglomeration economies in European transport corridor regions are positively related to indicators of regional economic development compared to regions outside the scope of corridors. The results build on the notion that the type of agglomeration economy in combination with the structure of the economy matters for prospects of structural economic growth in different regions. In this way, the analysis not only contributes to enhancing the empirical scrutiny of the corridor concept in EU transport policy, but also provides new insights into how corridors contribute to regional economic growth. We find only limited evidence for a corridor effect across European regions on productivity and employment growth externalities. Instead, we find a large degree of spatial heterogeneity interacting with corridors—a heterogeneity that has been little recognized in EU policies. We suggest that recent attention to place-based development strategies may accord well with the kinds of agglomeration effects related to corridor development observed in this study.     

Revisiting interregional wage differentials: New evidence from Spain with matched employer-employee data

This article examines wage differences across Spain's NUTS-2 regions along the entire wage distribution based on matched employer-employee microdata from 2006 to 2014. Unlike previous related studies, we properly control for differences in regional purchasing power parities, which are very large in practice. Although part of the raw regional wage differences observed is explained by differences between regions in productive structures, and, to a much lesser extent, in labor forces, noteworthy, very similar throughout the wage distribution regional differences net of composition effects arise even after controlling for a broad set of individual and firm characteristics.     

THE URBAN ENTERPRISE ZONE*

ABSTRACT This paper provides an analytical framework of urban enterprise zones in a context of regional development. The direct and indirect impacts of urban enterprise zones on regional economies such as job creation, urban unemployment, agricultural wage and changes in the regional economic structure are analyzed by incorporating the intermediate goods sector. The study suggests that the establishment of urban enterprise zones is a beneficial and effective policy instrument which can be used in promoting urban renewal and regional economic growth.     

SKILLS,THE GENDER WAGE GAP,AND CITIES

This paper links gender wage gaps with the urban wage premium. First, the study documents gender wage gaps are narrower in larger U.S. metropolitan areas in 2000 and 2010. Skill agglomerations are then considered to explain this. Specifically, if men and women employ heterogeneous skills, and these skills have differential productivities across city sizes, agglomerative forces may differentially reward men and women. Occupational data show that women are concentrated in jobs relatively more intensive in interactive and cognitive skills, while men are comparatively in physical skill‐intensive jobs. Decomposing the gender wage gap shows that explanatory factors (education, skills, and location) predict women would outearn men. Instead, agglomerative skill returns account for majority of the gap. These estimates suggest that even as women employ skills rewarded in agglomeration economies, they benefit less from agglomerations than men, resulting in the observed gap.     

SPATIAL IMPACTS OF AGGLOMERATION EXTERNALITIES*

ABSTRACT This article examines the extent to which agglomeration economies in one location affect employment growth and establishment births, using data from the Dutch province of South‐Holland. The data are of particular interest because they represent a census, rather than a sample, of all establishments and the location of establishments can be pinpointed to within 416 (postal) zip code areas averaging less than 6 km² in size. Results suggest that agglomeration economies positively affect employment growth and the location of new establishments, but with the possible exception of manufacturing, this effect dies out quickly with distance. Thus, the main finding is that for many industries, agglomerative forces may well operate at a geographic scale that is smaller than a city.     

Geographical Concentration of Manufacturing Industries in China: The Importance of Spatial and Industrial Scales

Using the most recent data from the first economic census in China, a team of China-based and American economic geographers investigates the geographical concentration of manufacturing industries at the provincial and county levels by integrating proxy variables for natural advantages, agglomeration economies, and institutional changes (e.g., decentralization) associated with economic transition. The authors focus their investigation on manufacturing activity as a whole, as well as on manufacturing categories at the two- and three-digit levels of aggregation (the latter representing a finer scale of analysis than used in almost all previous studies). Interesting differences emerge in the locational patterns of industries whose enterprises pursue strategies of globalization vis-à-vis local protectionism. Differences also are apparent in the impacts of agglomeration economies and knowledge spillover at different spatial scales. The findings suggest that both spatial scale and level of industrial aggregation matter when analyzing patterns of industrial agglomeration in China. Journal of Economic Literature, Classification Numbers: L10, L20, L60, O18. 5 figures, 5 tables, 50 references.     

Where Do Cities Form? A Geographical Agglomeration Model for Europe*

Abstract. In the recent literature on spatial agglomeration models, substantial progress has been made in modeling urban structures in terms of number and size of cities, but the question where cities arise remains unanswered. This paper illustrates that if a spatial agglomeration model is extended with a true geographical dimension, the location of cities can also be endogenized. A geographical agglomeration model for Europe shows that the size and place of cities can be simultaneously determined. The empirical results suggest that elementary economic forces such as agglomeration economies and transportation costs might be able to explain place and size of cities in the long run to a substantial degree. In addition, some new statistical measures of fit are discussed that are needed to evaluate simulations results of this kind.     

RETURNS TO COLLEGE MAJORS ACROSS LARGE METROPOLITAN AREAS

In this paper, we provide new evidence that earnings for various college majors differ across large metropolitan areas in the United States. We then set out to explain, at least in part, why these differences exist. We find that the intrinsic elements of geographic areas, such as common agglomeration effects and spatial differences in demand, are an important explanation for all majors. Further, we find that the endogenous sorting of individuals plays less of a role, particularly for domestic‐born college graduates. The sorting of lower‐paid, foreign‐born college graduates, however, increases the estimated dispersion in returns across geographic areas.     

长三角区域旅游产业集聚水平研究

长三角区域旅游合作呼唤对旅游产业集聚水平的研究。本文引用产业基尼系数、区位商指数和产业区域集聚度指数对长三角区域旅游产业集聚度进行测算,同时对旅游产业集聚度与区域GDP增长的关系进行分析。计算结果表明：长三角区域旅游产业已经出现较强的集聚现象,但区域内部集聚程度不均衡;旅游产业中星级饭店、旅行社、其他旅游企业的区域集聚度与区域经济发展分别呈高、负、中相关性。研究同时显示区域集聚度与区域经济发展高度相关,且集聚程度呈上升趋势的行业,一定程度上将更多地拉动经济增长。     

Stability of Spatial Equilibrium*

Abstract. Asymptotic stability of equilibrium is often difficult to know when the number of variables exceeds four, since all eigenvalues of the Jacobian matrix are not analytically solvable. However, we obtain stability conditions for a general class of migration dynamics without computing eigenvalues. We show that a spatial equilibrium is stable in the presence of strong congestion diseconomies, but unstable in the presence of strong agglomeration economies. We also show existence of a stable equilibrium in the case of negligible interregional externalities, which is applicable to club goods, local public goods, and new economic geography.     

Do Workers Benefit from Industrial Agglomeration?*

Abstract. This paper provides an empirical investigation of the advantages accruing to workers in industrial clusters. Using a unique data set based on the Cluster Mapping Project of the Italian National Statistical Institute, we examine whether industry agglomeration leads to wage and labor mobility differentials. We estimate complete Mincerian wage equations, investigating whether returns to seniority and education are a possible source of differentiation. We find that working in an industrial cluster reduces the returns to education, does not affect the returns to seniority, and does not provide average wage premia. On the other hand, industrial agglomeration positively affects the likelihood of being employed, of starting a business, and of making a transition from payroll employment to entrepreneurship; it also increases blue‐collar worker mobility across jobs.     

DISENTANGLING AGGLOMERATION ECONOMIES: AGENTS,SOURCES, AND SPATIAL DEPENDENCE*

ABSTRACT This paper expands the literature on agglomeration economies in three ways. It disentangles amenity and productivity effects of agglomeration; it decomposes aggregate scale effects into agglomeration factors of interest to policy makers; and it estimates own effects and spillovers to neighbors. It proposes a spatial simultaneous equations model in a spatial equilibrium framework with three agents—workers, consumers, and producers of traded‐goods and housing. Results for Ohio counties estimate economies resulting from population size, agglomeration causes, and public service quality and cost on each of the three agents in own and neighboring counties.