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Spatial skill concentration agglomeration economies

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  • Philipp Ehrl
  • Leonardo Monasterio

Abstract

Using the Brazilian census and administrative panel data, the present paper provides evidence that the spatial concentration of analytical skills generates positive wage externalities for all workers in the local labor market. We rely on shift‐share instrumental variables to overcome the endogeneity of skill concentrations. The observed externality is independent from the classical market size economies. The estimates are robust to geography, institutions and workers' sorting on unobservable abilities.

Suggested Citation

  • Philipp Ehrl & Leonardo Monasterio, 2021. "Spatial skill concentration agglomeration economies," Journal of Regional Science, Wiley Blackwell, vol. 61(1), pages 140-161, January.
    • Handle: RePEc:bla:jregsc:v:61:y:2021:i:1:p:140-161
    DOI: 10.1111/jors.12505
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    4. Zhenshan Yang, 2023. "Human capital space: a spatial perspective of the dynamics of people and economic relationships," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.

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