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Trade, location, and wages in the United States

Listed author(s):
  • Knaap, Thijs

This paper estimates a spatial wage structure for the United States.I employ the market-access and supplier-access method of Reddingand Venables (2004), where access is determined using interstate tradedata. Economic geography models predict that state-level wages arecorrelated to this measure, owing to higher levels of demand and betteravailability of intermediate goods in easily accessible regions. Aftercorrecting for omitted-variable bias with exogenous ‘first nature’ regressorsand using the appropriate instruments, I find that the explanatorypower of access-variables is weak in this dataset.

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Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 36 (2006)
Issue (Month): 5 (September)
Pages: 595-612

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Handle: RePEc:eee:regeco:v:36:y:2006:i:5:p:595-612
Contact details of provider: Web page: http://www.elsevier.com/locate/regec

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