The estimation of urban premium wage using propensity score analysis: some considerations from the spatial perspective
AbstractThis paper estimates the Urban Wage Premium for the Chilean case, but proposing three contributions to the literature. First, the geographical space is reconfigured using functional regions instead administrative regions. This process is carried out using techniques from the spatial econometric literature. Second, we exploit the use of micro data. We estimate the wage equation using a survey at individual level that avoids problems associated with regional aggregated specifications. Finally, we set the comparability among observations using matching comparison. Thus, we isolate the urban effect from other alternative sources. Our results suggest a Urban Wage Premium between 4 and 21%.
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Bibliographic InfoPaper provided by Universidad Catolica del Norte, Chile, Department of Economics in its series Documentos de Trabajo en Economia y Ciencia Regional with number 21.
Length: 37 pages
Date of creation: Apr 2012
Date of revision: Apr 2012
Size and Spatial Distributions of Regional Economic Activity;
Find related papers by 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)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-02 (All new papers)
- NEP-GEO-2012-05-02 (Economic Geography)
- NEP-LMA-2012-05-02 (Labor Markets - Supply, Demand, & Wages)
- NEP-URE-2012-05-02 (Urban & Real Estate Economics)
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