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.;
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