Wages and Industrial Clusters in Rio Grande do Sul (Brazil)
The purpose of this paper is to test whether the New Economic Geography hypothesis concerning the existence of a spatial wage structure applies to the state of Rio Grande do Sul, Brazil. The first part of the study applies several spatial analysis techniques in order to locate industrial clusters and calculate the market potential of the municipalities studied. The second part uses this information together with demographic data to run wage regressions aimed at capturing the effects of agglomeration and urban economies on individual wages. The results do not falsify the hypothesis that nominal wages, using the proper controls, are higher in municipalities with higher market potential and lower in the economically disadvantaged hinterland of the state.
References listed on IDEAS
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- Krugman, Paul, 1991.
"Increasing Returns and Economic Geography,"
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- Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 1077-1106.
- Duranton, Gilles & Overman, Henry G, 2002. "Testing for Localization Using Micro-Geographic Data," CEPR Discussion Papers 3379, C.E.P.R. Discussion Papers.
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- Gilles Duranton & Henry G. Overman, 2002. "Testing for localisation using micro-geographic data," LSE Research Online Documents on Economics 20071, London School of Economics and Political Science, LSE Library.
- Gilles Duranton & Henry Overman, 2002. "Testing for Localisation Using Micro-Geographic Data," CEP Discussion Papers dp0540, Centre for Economic Performance, LSE.
- Gilles Duranton & Henry G. Overman, 2005. "Testing for localization using micro-geographic data," LSE Research Online Documents on Economics 581, London School of Economics and Political Science, LSE Library.
- Juan Carlos Duque & RaÃºl Ramos & Jordi SuriÃ±ach, 2007. "Supervised Regionalization Methods: A Survey," International Regional Science Review, , vol. 30(3), pages 195-220, July.
- Juan Carlos Duque & Raul Ramos & Jordi Suriñach, 2006. "Supervised regionalization methods, a survey," IREA Working Papers 200608, University of Barcelona, Research Institute of Applied Economics, revised Dec 2006.
- Bastiaanssen, W. G. M. & van Dam, J. C. & Droogers, P., 2003. "Introduction," IWMI Books, Reports H043801, International Water Management Institute.
- Bernard Fingleton, 2006. "The new economic geography versus urban economics: an evaluation using local wage rates in Great Britain," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 501-530, July.
- Bernard Fingleton, 2004. "The new economic geography versus urban economics : an evaluation using local wage rates in Great Britain," ERSA conference papers ersa04p638, European Regional Science Association.
- Gordon H. Hanson, 2000. "Scale Economies and the Geographic Concentration of Industry," NBER Working Papers 8013, National Bureau of Economic Research, Inc. Full references (including those not matched with items on IDEAS)
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