EXPLORING THE DETAILED LOCATION PATTERNS OF U.K. MANUFACTURING INDUSTRIES USING MICROGEOGRAPHIC DATA*

ABSTRACT We use a point‐pattern methodology to explore the detailed location patterns of U.K. manufacturing industries. In particular, we consider the location of entrants and exiters versus continuing establishments, domestic‐ versus foreign‐owned, large versus small, and affiliated versus independent. We also examine colocalization between vertically‐linked industries. Our analysis provides a set of new stylized facts and confirmation for others.     

Labor Specialization, Transport Costs, and City Size

This paper proposes a simple model of pre-industrial urbanization. Agglomeration stems from increasing returns generated by the specialization of labor, whereas dispersion is provoked by the transport costs of the agricultural good. Considering the existence of some urban institutions (in particular guilds), the equilibrium size of cities is derived and it is efficient. Within this framework, the effects of urban domination (e.g., taxation of agriculture) and the emergence of primate cities are explored. Finally, the transition between early and modern urbanization is studied.     

AGGLOMERATION EFFECTS IN COLOMBIA

I estimate an elasticity of wages with respect to city population of about 5 percent for Colombian cities. This finding is robust to a number of econometric concerns. The second main finding is a negative effect of market access on wages. Third main finding regards stronger agglomeration effects in the informal sector. In turn, this explains a range of other negative findings, including only weak evidence in favor of human capital externalities, no evidence of a complementarity between cities and skills, and an absence of learning effects. I do not find measurable effects of roads or amenities on wages either.     

Agglomeration and growth: a dialogue between economists and geographers

This special issue contains papers by both economists and geographerson agglomeration and growth. In this introduction, we firstprovide a brief sketch of recent developments in the interactionbetween economists and geographers. We then propose some contextualbackground to make it easier for geographers to approach theeconomics papers of this issue and conversely. Finally, specificareas of overlapping interests to the two disciplines are alsohighlighted.     

Mind the Gaps: The Evolution of Regional Earnings Inequalities in the U.K., 1982–1997

In this paper we apply earnings equations for U.K. regions over 1982–1997. We find evidence of rapid convergence across regions regarding the determinants of individual wages (i.e., regional fixed-effects, gender gaps, and returns to education and experience). In contrast, data on average regional earnings point to a worsening of U.K. regional inequalities and a rise in the North-South gap. Education accounts for most of the discrepancy between aggregate divergence and disaggregated convergence. First, London gained because its workforce became relatively more educated over the period. Second, returns to education increased nationwide, which favored the most educated regions (i.e., London). Third, returns to education were initially lower in London but they (partially) caught up with the rest of the country. Had returns to education and their distribution across U.K. regions remained stable over the period, the U.K. North-South divide would have decreased.