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Productivity Differences and Agglomeration Across Districts of Great Britain

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Author Info
Lubomira Anastassova

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Abstract

This paper examines the impact of employment density (agglomeration) on the hourly earnings of workers across districts of Great Britain. The potentially two-way causality between agglomeration and productivity is dealt with using two instruments: the total land area of a district and its population density. The estimated agglomeration effect is similar across different levels of territorial aggregation; however, the effect is stronger when looking only across Metropolitan areas. There is evidence of endogeneity only when the sample is split into Metropolitan and Non-Metropolitan areas and even so endogeneity has only little effect on the estimates.

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Publisher Info
Paper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp289.

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Date of creation: Feb 2006
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Handle: RePEc:cer:papers:wp289

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Related research
Keywords: Agglomeration; Productivity; Multiple Instruments.;

Find related papers by JEL classification:
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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  1. Robert Stehrer & Neil Foster, 2008. "Sectoral Productivity, Density and Agglomeration in the Wider Europe," Working Papers 47, The Vienna Institute for International Economic Studies, wiiw. [Downloadable!]
  2. Daniel F. Heuermann, 2008. "Human Capital Externalities in Western Germany," Discussion Papers 200805, Institute of Labour Law and Industrial Relations in the European Community (IAAEG). [Downloadable!]
    Other versions:
  3. Raouf Boucekkine & David de la Croix & Dominique Peeters, 2007. "Early Literacy Achievements, Population Density, and the Transition to Modern Growth," Journal of the European Economic Association, MIT Press, vol. 5(1), pages 183-226, 03. [Downloadable!] (restricted)
    Other versions:
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