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The impact of agglomeration effects and accessibility on wages

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  • Anna Matas

    (Universitat Autònoma de Barcelona, Dpt. Economia Aplicada, Fac. Ciències Econòmiques, Campus de Bellaterra, 08193 Bellaterra, Barcelona.)

  • José Luís Raymond

    (Universitat Autònoma de Barcelona, Dpt. Economia Aplicada, Fac. Ciències Econòmiques, Campus de Bellaterra, 08193 Bellaterra, Barcelona.)

  • José Luís Roig

    (Universitat Autònoma de Barcelona, Dpt. Economia Aplicada, Fac. Ciències Econòmiques, Campus de Bellaterra, 08193 Bellaterra, Barcelona.)

Abstract

This paper contributes to the empirical literature on the effects of agglomeration and road accessibility on productivity of firms by looking at the case of Spain. We approach productivity indirectly by using individual wages allocated at the NUTS III level. We use a repeated cross-section of individual micro-data for the years 1995, 2002 and 2006. The availability of interprovincial travel time data for each of the three years allows controlling for transport improvements over the period by using a market potential variable. Additionally, agglomeration is approached by employment density and we control for localization economies, human capital externalities and a large set of individual and workplace characteristics. Estimating by instrumental variables, our results show a positive and significant effect of market accessibility on wages and non linear effect for employment density.

Suggested Citation

  • Anna Matas & José Luís Raymond & José Luís Roig, 2011. "The impact of agglomeration effects and accessibility on wages," Working Papers XREAP2011-16, Xarxa de Referència en Economia Aplicada (XREAP), revised Nov 2011.
    • Handle: RePEc:xrp:wpaper:xreap2011-16
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