Advanced Search
MyIDEAS: Login to save this paper or follow this series

Geography, population density, and per-capita income gaps across US states and Canadian provinces

Contents:

Author Info

  • Lagerlöf, Nils-Petter
  • Basher, Syed A.

Abstract

We explain per-capita income gaps across US states and Canadian provinces by the following chain of causation. Geography determined where Europeans originally settled: in Northeastern USA, along those segments of the Atlantic coast where the climate was neither too hot (the US South), nor too cold (Canada). Higher population densities in this early settled region have prevailed to this day. This has in turn affected per-capita incomes because densely populated areas are conducive to skill accumulation; indicatively, many of the world’s top universities lie in this region. Our ordinary least-squares regressions show university education having a robust positive and significant effect on per-capita incomes. To control for endogeneity we run various instrumental-variable regressions: some where education today is instrumented with e.g. population density in 1900; and some where different sets of geography variables (e.g. temperature) are used as instruments. Our findings are consistent with the type of causal chain described.

Download Info

If 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.
File URL: http://mpra.ub.uni-muenchen.de/369/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 369.

as in new window
Length:
Date of creation: Oct 2005
Date of revision: 28 Sep 2006
Handle: RePEc:pra:mprapa:369

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: Geography; population density; income gaps; Canada; USA;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Rappaport, Jordan & Sachs, Jeffrey D, 2003. " The United States as a Coastal Nation," Journal of Economic Growth, Springer, Springer, vol. 8(1), pages 5-46, March.
  2. Guido Tabellini, 2005. "Culture and Institutions: economic development in the regions of Europe," Working Papers 292, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  3. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," NBER Working Papers 8460, National Bureau of Economic Research, Inc.
  4. Mitchener, Kris James & McLean, Ian W, 2003. " The Productivity of US States since 1880," Journal of Economic Growth, Springer, Springer, vol. 8(1), pages 73-114, March.
  5. Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers, Tel Aviv 14-92, Tel Aviv.
  6. Richard Rogerson, 2007. "Structural Transformation and the Deterioration of European Labor Market Outcomes," NBER Working Papers 12889, National Bureau of Economic Research, Inc.
  7. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 103(5), pages 1067-90, October.
  8. Angrist, Joshua, 2001. "How Do Sex Ratios Affect Marriage and Labor Markets? Evidence from America's Second Generation," IZA Discussion Papers 368, Institute for the Study of Labor (IZA).
  9. Edward Glaeser, 1997. "Learning in Cities," NBER Working Papers 6271, National Bureau of Economic Research, Inc.
  10. Jeffrey D. Sachs, 2001. "Tropical Underdevelopment," NBER Working Papers 8119, National Bureau of Economic Research, Inc.
  11. Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3643, C.E.P.R. Discussion Papers.
  12. Daniel Berkowitz & Karen Clay, . "Initial Conditions, Institutional Dynamics and Economic Performance: Evidence from the American States," American Law & Economics Association Annual Meetings, American Law & Economics Association 1083, American Law & Economics Association.
  13. Robert J. Gordon, 2004. "Two Centuries of Economic Growth: Europe Chasing the American Frontier," NBER Working Papers 10662, National Bureau of Economic Research, Inc.
  14. Jordan Rappaport, 2003. "Moving to nice weather," Research Working Paper, Federal Reserve Bank of Kansas City RWP 03-07, Federal Reserve Bank of Kansas City.
  15. Edward L. Glaeser & David C. Mare, 1994. "Cities and Skills," NBER Working Papers 4728, National Bureau of Economic Research, Inc.
  16. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, American Economic Association, vol. 91(5), pages 1369-1401, December.
  17. Edward C. Prescott, 2003. "Why do Americans work so much more than Europeans?," Staff Report, Federal Reserve Bank of Minneapolis 321, Federal Reserve Bank of Minneapolis.
  18. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," NBER Working Papers 10568, National Bureau of Economic Research, Inc.
  19. Jeffrey D. Sachs, 2003. "Institutions Don't Rule: Direct Effects of Geography on Per Capita Income," NBER Working Papers 9490, National Bureau of Economic Research, Inc.
  20. Coelho, Philip R. P. & McGuire, Robert A., 1997. "African and European Bound Labor in the British New World: The Biological Consequences of Economic Choices," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 57(01), pages 83-115, March.
  21. Lena Edlund, 2005. "Sex and the City," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 107(1), pages 25-44, 03.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:369. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

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.