Spatial wage disparities and the role of spatial labor sorting
AbstractSpatial wage inequality among Chilean counties reached its peak in 1994, when it represented 19.2% of total wage inequality. By 2009, spatial inequality had decreased to 10.3%. However, when the model included controls on human capital, spatial inequality fell to 6%. This result implies that spatial labor sorting accounts for an average of about 45% of the spatial wage disparity. These findings suggest that policymakers should consider ways to spread human capital throughout the nation as an alternative to reduce spatial inequality.
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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 28.
Length: 12 pages
Date of creation: Sep 2012
Date of revision: Sep 2012
Spatial income inequality; spatial sorting; multilevel regression.;
Find related papers by JEL classification:
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
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- Dusan Paredes Araya & Victor Iturra Rivera, 2013.
"Substitution bias and the construction of a spatial cost of living index,"
Papers in Regional Science,
Wiley Blackwell, vol. 92(1), pages 103-117, 03.
- Dusan Paredes & Víctor Iturra, 2011. "Substitution Bias and the Construction of a Spatial Cost of Living Index," Documentos de Trabajo en Economia y Ciencia Regional 13, Universidad Catolica del Norte, Chile, Department of Economics, revised May 2011.
- López, Ramón & Miller, Sebastian J., 2008. "Chile: The Unbearable Burden of Inequality," World Development, Elsevier, vol. 36(12), pages 2679-2695, December.
- Dusan Paredes, 2011. "A methodology to compute regional housing price index using matching estimator methods," The Annals of Regional Science, Springer, vol. 46(1), pages 139-157, February.
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