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Dynamic agglomeration economies and learning by working in specialised regions
[The sources of the urban wage premium by worker skills: spatial sorting or agglomeration economies?]

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  • Jan Cornelius Peters

Abstract

This study provides new evidence on the magnitude of dynamic agglomeration economies. It estimates the elasticity of entry wage with regard to the size of the regional labour markets in which previous work experience was acquired and considers, furthermore, the workforce compositions in these regions. The results indicate that not only the sheer size of regional labour markets determine individual knowledge accumulation. Benefits from acquiring experience in large labour markets by workers in service sector occupations are partly caused by human capital externalities, whereas manufacturing workers experience additional dynamic gains from localisation economies, in Germany particularly outside urban centres.

Suggested Citation

  • Jan Cornelius Peters, 2020. "Dynamic agglomeration economies and learning by working in specialised regions [The sources of the urban wage premium by worker skills: spatial sorting or agglomeration economies?]," Journal of Economic Geography, Oxford University Press, vol. 20(3), pages 629-651.
    • Handle: RePEc:oup:jecgeo:v:20:y:2020:i:3:p:629-651.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbz022
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    More about this item

    Keywords

    Dynamic agglomeration economies; human capital externalities; learning; localisation economies;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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