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New Economic Geography: Empirical Evidence of the Estimation of the Nominal Wage Equation

Author

Listed:
  • Jesus Lopez Rodriguez

    (Grupo Jean Monnet de Competencia y Desarrollo (C+D Research Group))

  • Andrés Faiña

    (Grupo Jean Monnet de Competencia y Desarrollo (C+D Research Group))

Abstract

In this paper we analyze the empirical developments concerning the estimation of the nominal wage equation proposed in the context of the New Economic Geography models. Results from the empirical works carried out for a sample of countries and for the European Union confirm the theoretical predictions of the models, showing that economic geography variables are key in order to explain the spatial wage structure observed in the different geographical areas mentioned.

Suggested Citation

  • Jesus Lopez Rodriguez & Andrés Faiña, 2008. "New Economic Geography: Empirical Evidence of the Estimation of the Nominal Wage Equation," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 69, pages 41-62, Julio-Dic.
    • Handle: RePEc:lde:journl:y:2008:i:69:p:41-62
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    File URL: https://revistas.udea.edu.co/index.php/lecturasdeeconomia/issue/view/81
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    More about this item

    Keywords

    New Economic Geography; Agglomeration; International Trade; Transport Costs; Market Potential;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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