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The effect of agglomeration and transport on labour productivity in Saint Petersburg metropolitan area

Author

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  • Salov, A.

    (HSE University, Department of Applied Economics, Moscow, Russia)

  • Semerikova, E.

    (HSE University, Department of Applied Economics, Moscow, Russia)

Abstract

In this paper, we assess the extent of agglomeration externalities that mirror on labour productivity gains while accounting for the direct and indirect effects of transportation exposure. To this end we combine data on the local average wage and employment with comprehensive information on the public transportation and road networks of the Saint Petersburg Metropolitan Area, one of the most populous agglomerations in Europe. According to our findings, there is a considerable and noteworthy impact of only transit exposure measures on local labour productivity, whereas the effect of agglomeration economies on labour productivity evaporates after the instrumentation technique is applied. Additionally, we reveal that the inclusion of public transportation exposure measures into estimation results in stealing the positive effect on labour productivity from private modes in favour of public transit.

Suggested Citation

  • Salov, A. & Semerikova, E., 2026. "The effect of agglomeration and transport on labour productivity in Saint Petersburg metropolitan area," Journal of the New Economic Association, New Economic Association, vol. 70(1), pages 221-237.
    • Handle: RePEc:nea:journl:y:2026:i:70:p:221-237
    DOI: 10.31737/22212264_2026_1_221-237
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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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