IDEAS home Printed from https://ideas.repec.org/p/anp/en2016/158.html
   My bibliography  Save this paper

From Rivers To Roads: Spatial Mismatch And Inequality Of Opportunity In Urban Labor Markets Of A Megacity

Author

Listed:
  • EDUARDO AMARAL HADDAD
  • ANA MARIA BONOMI BARUFI

Abstract

The spatial mismatch between residential locations and jobs can be particularly relevant for low-skilled individuals. In this paper, we first explore such phenomenon from the perspective of the distance of the residence to the geographic concentration of jobs, and locational disadvantages of the urban form itself. Such unequal conditions in the labor market present a great challenge for the spatial sustainability of the multiple equilibria achieved simultaneously at the labor and the housing markets. We estimate the main aspects that influence wage differentials among individuals, focusing on the role of accessibility on labor market outcomes. We suggest the inclusion of geographical characteristics as instruments to deal with endogeneity problems that arise in the estimation of urban price models. Our strategy is based on the inclusion of a specific geographic/historic variable as instrument, namely the river shore access to the first school built by the Jesuits in São Paulo, the city’s founding location. Geography acted as a determinant of the location of the transportation infrastructure in the region, so that the road and rail networks in the city present a strong spatial correlation with pre-urban “waterways”. Nowadays, the vast majority of rivers and creeks are covered with asphalt and cement, and economic agents are practically unaware of their existence.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Eduardo Amaral Haddad & Ana Maria Bonomi Barufi, 2018. "From Rivers To Roads: Spatial Mismatch And Inequality Of Opportunity In Urban Labor Markets Of A Megacity," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 158, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
  • Handle: RePEc:anp:en2016:158
    as

    Download full text from publisher

    File URL: https://www.anpec.org.br/encontro/2016/submissao/files_I/i10-b588dc34e483aefedfe268d86455570a.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Zenou,Yves, 2009. "Urban Labor Economics," Cambridge Books, Cambridge University Press, number 9780521698221, October.
    2. Zenou, Yves, 2002. "How do firms redline workers?," Journal of Urban Economics, Elsevier, vol. 52(3), pages 391-408, November.
    3. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117, Elsevier.
    4. Karima Kourtit & Peter Nijkamp & Roger R. Stough (ed.), 2015. "The Rise of the City," Books, Edward Elgar Publishing, number 15798.
    5. van Ommeren, Jos N. & Gutiérrez-i-Puigarnau, Eva, 2011. "Are workers with a long commute less productive? An empirical analysis of absenteeism," Regional Science and Urban Economics, Elsevier, vol. 41(1), pages 1-8, January.
    6. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171, Elsevier.
    7. Haddad, Eduardo A. & Hewings, Geoffrey J.D. & Porsse, Alexandre A. & Van Leeuwen, Eveline S. & Vieira, Renato S., 2015. "The underground economy: Tracking the higher-order economic impacts of the São Paulo Subway System," Transportation Research Part A: Policy and Practice, Elsevier, vol. 73(C), pages 18-30.
    8. Daniel J. Graham & Patricia C. Melo, 2009. "Agglomeration Economies and Labour Productivity: Evidence from Longitudinal Worker Data for GBs Travel-to-Work Areas," SERC Discussion Papers 0031, Centre for Economic Performance, LSE.
    9. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, vol. 12(2), pages 161-196, May.
    10. Vieira, Renato & Haddad, Eduardo, 2012. "An Accessibility Index for the Metropolitan Region of São Paulo," TD NEREUS 15-2012, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    11. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July.
    12. J. V. Henderson & J. F. Thisse (ed.), 2004. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 4, number 4.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amaral Haddad, Eduardo & Lozano-Gracia, Nancy & Germani, Eduardo & Vieira, Renato & Nakamura, Shohei & Skoufias, Emmanuel & Bianchi Alves, Bianca, 2018. "Mobility in Cities: Distributional Impact Analysis of Transportation Improvement in São Paulo Metropolitan Region," TD NEREUS 4-2018, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    2. Haddad, Eduardo Amaral & Lozano-Gracia, Nancy & Germani, Eduardo & Vieira, Renato S. & Nakamura, Shohei & Skoufias, Emmanuel & Alves, Bianca Bianchi, 2019. "Mobility in cities: Distributional impact analysis of transportation improvements in São Paulo Metropolitan Region," Transport Policy, Elsevier, vol. 73(C), pages 125-142.
    3. Barros Antunes Campos, Rodger & Azzoni, Carlos Roberto, 2019. "Estimating the Intra-Urban Wage Premium," TD NEREUS 4-2019, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    4. Bonomi Barufi, Ana Maria & Amaral Haddad, Eduardo, 2016. "Spatial Mismatch, Wages and Unemployment in Brazilian Metropolitan Areas," TD NEREUS 9-2016, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stef Proost & Jacques-François Thisse, 2019. "What Can Be Learned from Spatial Economics?," Journal of Economic Literature, American Economic Association, vol. 57(3), pages 575-643, September.
    2. Rosa Sanchis-Guarner, 2012. "Driving Up Wages: The Effects of Road Construction in Great Britain," SERC Discussion Papers 0120, Centre for Economic Performance, LSE.
    3. Diego Puga, 2010. "The Magnitude And Causes Of Agglomeration Economies," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 203-219, February.
    4. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 561-624, Elsevier.
    5. Haddad, Eduardo & Hewings, Geoffrey & Porsse, Alexandre & Van Leeuwen, Eveline & Vieira, Renato, 2013. "The Underground Economy: Tracking the Wider Impacts of the São Paulo Subway System," TD NEREUS 8-2013, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    6. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    7. Akamatsu, Takashi & Mori, Tomoya & Osawa, Minoru & Takayama, Yuki, 2017. "Spatial scale of agglomeration and dispersion: Theoretical foundations and empirical implications," MPRA Paper 80689, University Library of Munich, Germany.
    8. Haddad, Eduardo Amaral & Lozano-Gracia, Nancy & Germani, Eduardo & Vieira, Renato S. & Nakamura, Shohei & Skoufias, Emmanuel & Alves, Bianca Bianchi, 2019. "Mobility in cities: Distributional impact analysis of transportation improvements in São Paulo Metropolitan Region," Transport Policy, Elsevier, vol. 73(C), pages 125-142.
    9. Stephen J. Redding, 2010. "The Empirics Of New Economic Geography," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 297-311, February.
    10. Gabriel M. Ahlfeldt & Stephen J. Redding & Daniel M. Sturm & Nikolaus Wolf, 2015. "The Economics of Density: Evidence From the Berlin Wall," Econometrica, Econometric Society, vol. 83, pages 2127-2189, November.
    11. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    12. Wouter Vermeulen, 2011. "Agglomeration Externalities and Urban Growth Controls," CPB Discussion Paper 191.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    13. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2016. "How to make the metropolitan area work? Neither big government, nor laissez-faire," Journal of Public Economics, Elsevier, vol. 134(C), pages 100-113.
    14. Lorenz, Olga & Goerke, Laszlo, 2015. "Commuting and Sickness Absence," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113173, Verein für Socialpolitik / German Economic Association.
    15. Zhang, Wenjia & Kockelman, Kara M., 2016. "Optimal policies in cities with congestion and agglomeration externalities: Congestion tolls, labor subsidies, and place-based strategies," Journal of Urban Economics, Elsevier, vol. 95(C), pages 64-86.
    16. Pierre‐Philippe Combes & Gilles Duranton & Laurent Gobillon & Diego Puga & Sébastien Roux, 2012. "The Productivity Advantages of Large Cities: Distinguishing Agglomeration From Firm Selection," Econometrica, Econometric Society, vol. 80(6), pages 2543-2594, November.
    17. Wouter Vermeulen, 2017. "Agglomeration externalities and urban growth controls," Journal of Economic Geography, Oxford University Press, vol. 17(1), pages 59-94.
    18. Amaral Haddad, Eduardo & Lozano-Gracia, Nancy & Germani, Eduardo & Vieira, Renato & Nakamura, Shohei & Skoufias, Emmanuel & Bianchi Alves, Bianca, 2018. "Mobility in Cities: Distributional Impact Analysis of Transportation Improvement in São Paulo Metropolitan Region," TD NEREUS 4-2018, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    19. Marianna Belloc & Paolo Naticchioni & Claudia Vittori, 2023. "Urban wage premia, cost of living, and collective bargaining," Journal of Economic Geography, Oxford University Press, vol. 23(1), pages 25-50.
    20. Stephen J. Redding, 2013. "Economic Geography: A Review of the Theoretical and Empirical Literature," Palgrave Macmillan Books, in: Daniel Bernhofen & Rod Falvey & David Greenaway & Udo Kreickemeier (ed.), Palgrave Handbook of International Trade, chapter 16, pages 497-531, Palgrave Macmillan.

    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:anp:en2016:158. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Rodrigo Zadra Armond (email available below). General contact details of provider: https://edirc.repec.org/data/anpecea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.