Spatial Income Inequality in Chile and the Rol of Spatial Labor Sorting
AbstractThe spatial income inequality in Latin American countries is a recent academic affair. Particularly, the case of Chile highlights around the world because it has one of the highest individual and spatial inequality rates. This article analyzes the spatial income inequality in Chile during 1992 2011 evaluating the role of the spatial labor sorting through multilevel models. The findings show that human capital doesn't allocate randomly across the space but its spatial concentration at the biggest urban centers impacts significantly the income inequality between counties. These findings motivate the discussion about spatial dimension of the inequality and suggest that policymakers should consider ways to spread human capital throughout the nation as an alternative to reduce spatial inequality.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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 46.
Length: 39 pages
Date of creation: Apr 2013
Date of revision: Apr 2013
Spatial income inequality; spatial labor sorting; human capital; multilevel regression.;
Find related papers by JEL classification:
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-05 (All new papers)
- NEP-HRM-2013-05-05 (Human Capital & Human Resource Management)
- NEP-LAM-2013-05-05 (Central & South America)
- NEP-LMA-2013-05-05 (Labor Markets - Supply, Demand, & Wages)
- NEP-LTV-2013-05-05 (Unemployment, Inequality & Poverty)
- NEP-PBE-2013-05-05 (Public Economics)
- NEP-URE-2013-05-05 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Corrado, L. & Fingleton, B., 2011.
"Multilevel Modelling with Spatial Effects,"
SIRE Discussion Papers
2011-13, Scottish Institute for Research in Economics (SIRE).
- MION, Giordano & NATICCHIONI, Paolo, 2006.
"The spatial sorting and matching of skills and firms,"
CORE Discussion Papers
2006099, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Giordano Mion & Paolo Naticchioni, 2009. "The spatial sorting and matching of skills and firms," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 28-55, February.
- Mion, Giordano & Naticchioni, Paolo, 2007. "The spatial sorting and matching of skills and firms," MPRA Paper 1721, University Library of Munich, Germany.
- Josef Novotný, 2007. "On the measurement of regional inequality: does spatial dimension of income inequality matter?," The Annals of Regional Science, Springer, vol. 41(3), pages 563-580, September.
- Laura Hering & Sandra Poncet, 2010.
"Market Access and Individual Wages: Evidence from China,"
The Review of Economics and Statistics,
MIT Press, vol. 92(1), pages 145-159, February.
- Laura Hering & Sandra Poncet, 2010. "Market access and individual wages: evidence from China," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) hal-00633785, HAL.
- Angelo Duarte & Pedro C. Ferreira & Márcio Salvato, 2003. "Disparidades Regionais ou Educacionais," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] f69, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- J. Vernon Henderson, 2000. "The Effects of Urban Concentration on Economic Growth," NBER Working Papers 7503, National Bureau of Economic Research, Inc.
- Halfdanarson, Benedikt & Heuermann, Daniel F. & Suedekum, Jens, 2008.
"Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations,"
IZA Discussion Papers
3493, Institute for the Study of Labor (IZA).
- Daniel Heuermann & Benedikt Halfdanarson & Jens Suedekum, 2010. "Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations," Urban Studies, Urban Studies Journal Limited, vol. 47(4), pages 749-767, April.
- Edward L. Glaeser & Joshua D. Gottlieb, 2008.
"The Economics of Place-Making Policies,"
Brookings Papers on Economic Activity,
Economic Studies Program, The Brookings Institution, vol. 39(1 (Spring), pages 155-253.
- Charlot, Sylvie & Duranton, Gilles, 2003.
"Communication Externalities in Cities,"
CEPR Discussion Papers
4048, C.E.P.R. Discussion Papers.
- Sylvie Charlot & Gilles Duranton, 2003. "Communication Externalities in Cities," CEP Discussion Papers dp0592, Centre for Economic Performance, LSE.
- Sylvie Charlot & Gilles Duranton, 2003. "Communication externalities in cities," LSE Research Online Documents on Economics 20016, London School of Economics and Political Science, LSE Library.
- Edward L. Glaeser & Jed Kolko & Albert Saiz, 2000.
Harvard Institute of Economic Research Working Papers
1901, Harvard - Institute of Economic Research.
- Richard Florida, 2002. "Bohemia and economic geography," Journal of Economic Geography, Oxford University Press, vol. 2(1), pages 55-71, January.
- Judith K. Hellerstein & Melissa McInerney & David Neumark, 2011.
"Neighbors and Coworkers: The Importance of Residential Labor Market Networks,"
Journal of Labor Economics,
University of Chicago Press, vol. 29(4), pages 659 - 695.
- Judith K. Hellerstein & Melissa P. McInerney & David Neumark, 2010. "Neighbors And Co-Workers:The Importance Of Residential Labor Market Networks," Working Papers 101, Department of Economics, College of William and Mary.
- Judith K. Hellerstein & Melissa McInerney & David Neumark, 2008. "Neighbors And Co-Workers: The Importance Of Residential Labor Market Networks," NBER Working Papers 14201, National Bureau of Economic Research, Inc.
- Judith Hellerstein & Melissa McInerney & David Neumark, 2009. "Neighbors and Co-Workers: The Importance of Residential Labor Market Networks," Working Papers 09-01, Center for Economic Studies, U.S. Census Bureau.
- Judith K. Hellerstein & Melissa McInerney & David Neumark, 2010. "Neighbors and Co-Workers: The Importance of Residential Labor Market Networks," Global COE Hi-Stat Discussion Paper Series gd09-132, Institute of Economic Research, Hitotsubashi University.
- Brülhart, Marius & Sbergami, Federica, 2008.
"Agglomeration and Growth: Cross-Country Evidence,"
CEPR Discussion Papers
6941, C.E.P.R. Discussion Papers.
- Marius BRÜLHART & Federica SBERGAMI, 2008. "Agglomeration and Growth : Cross-Country Evidence," Cahiers de Recherches Economiques du DÃ©partement d'EconomÃ©trie et d'Economie politique (DEEP) 08.04, Université de Lausanne, Faculté des HEC, DEEP.
- Takahiro Akita, 2003. "Decomposing regional income inequality in China and Indonesia using two-stage nested Theil decomposition method," The Annals of Regional Science, Springer, vol. 37(1), pages 55-77, 02.
- Davis, James C. & Henderson, J. Vernon, 2003. "Evidence on the political economy of the urbanization process," Journal of Urban Economics, Elsevier, vol. 53(1), pages 98-125, January.
- Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
- López, Ramón & Miller, Sebastian J., 2008. "Chile: The Unbearable Burden of Inequality," World Development, Elsevier, vol. 36(12), pages 2679-2695, December.
- Moretti, Enrico, 2004.
"Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data,"
Journal of Econometrics,
Elsevier, vol. 121(1-2), pages 175-212.
- Enrico Moretti, 2002. "Estimating the Social Return to Higher Education: Evidence From Longitudinal and Repeated Cross-Sectional Data," NBER Working Papers 9108, National Bureau of Economic Research, Inc.
- Moretti, Enrico, 2010.
"Local Labor Markets,"
CEPR Discussion Papers
7818, C.E.P.R. Discussion Papers.
- Edward L. Glaeser, 1997.
"Learning in Cities,"
Harvard Institute of Economic Research Working Papers
1814, Harvard - Institute of Economic Research.
- Gudrun Kochendorfer-Lucius & Boris Pleskovic, 2009. "Berlin Workshop Series 2009 : Spatial Disparities and Development Policy," World Bank Publications, The World Bank, number 2650, January.
- Krugman, Paul, 1991.
"Increasing Returns and Economic Geography,"
Journal of Political Economy,
University of Chicago Press, vol. 99(3), pages 483-99, June.
- Henderson, Vernon, 2003. " The Urbanization Process and Economic Growth: The So-What Question," Journal of Economic Growth, Springer, vol. 8(1), pages 47-71, March.
- Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2004.
"Spatial Wage Disparities: Sorting Matters!,"
CEPR Discussion Papers
4240, C.E.P.R. Discussion Papers.
- Dusan Paredes, 2012. "Alternative theories for explaining the spatial wage inequality: a multilevel competition among human capital, NEG and amenities," Documentos de Trabajo en Economia y Ciencia Regional 20, Universidad Catolica del Norte, Chile, Department of Economics, revised Apr 2012.
- Ron A. Boschma & Michael Fritsch, 2009. "Creative Class and Regional Growth: Empirical Evidence from Seven European Countries," Economic Geography, Clark University, vol. 85(4), pages 391-423, October.
- Dusan Paredes & Patricio Aroca, 2008. "Metodología para Estimar un Indice Regional de Costo de Vivienda en Chile," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 45(131), pages 129-143.
- Alessia Matano & Paolo Naticchioni, 2012. "Wage distribution and the spatial sorting of workers," Journal of Economic Geography, Oxford University Press, vol. 12(2), pages 379-408, March.
- Fally, Thibault & Paillacar, Rodrigo & Terra, Cristina, 2010.
"Economic geography and wages in Brazil: Evidence from micro-data,"
Journal of Development Economics,
Elsevier, vol. 91(1), pages 155-168, January.
- Thibault Fally & Rodrigo Paillacar & Cristina Terra, 2008. "Economic Geography and Wages in Brazil: Evidence from Micro-Data," THEMA Working Papers 2008-23, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Helsley, Robert W. & Strange, William C., 1990. "Matching and agglomeration economies in a system of cities," Regional Science and Urban Economics, Elsevier, vol. 20(2), pages 189-212, September.
- Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
- 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.
- Alberto Dalmazzo & Guido Blasio, 2007. "Production and consumption externalities of human capital: an empirical study for Italy," Journal of Population Economics, Springer, vol. 20(2), pages 359-382, April.
- Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dusan Paredes).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.