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Wage Inequalities And Agglomeration In Croatia: Who’S To Blame?

Author

Listed:
  • Mustra, V.
  • Skrabic, B.
  • Burnac, P.

Abstract

This paper uses NUTS3 sub-regional data to investigate the sources of the regional wages differences on the sector level from year 2000 forward in less developed country such as Croatia. The shift-share analysis is used to decompose the spatial variation of wages into productivity effect and occupational composition effect exploring how the spatial variance in wages is attributable to variations in these effects among different sectors. In the last step of the paper we examine the relationship between these two determinants of spatial differences and the agglomeration instrumented by measure of urbanization in the NUTS3 sub-regions.

Suggested Citation

  • Mustra, V. & Skrabic, B. & Burnac, P., 2012. "Wage Inequalities And Agglomeration In Croatia: Who’S To Blame?," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(2).
    • Handle: RePEc:eaa:eerese:v:12:y2012:i:2_4
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    File URL: http://www.usc.es/economet/reviews/eers1224.pdf
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    More about this item

    Keywords

    sector composition index; sector-specific agglomeration; Croatia;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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