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Wages and Industrial Clusters in Rio Grande do Sul (Brazil)

  • Monteiro Monasterio, Leonardo

    (Federal U Pelotas and Institute for the Study of the Americas, U London)

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.

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File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/127/77
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Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

Volume (Year): 36 (2006)
Issue (Month): 3 ()
Pages: 304-23

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Handle: RePEc:rre:publsh:v:36:y:2006:i:3:p:304-23
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  1. Juan Carlos Duque & Raúl Ramos & Jordi Suriñach, 2007. "Supervised Regionalization Methods: A Survey," International Regional Science Review, , vol. 30(3), pages 195-220, July.
  2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  3. Gordon H. Hanson, 2000. "Scale Economies and the Geographic Concentration of Industry," NBER Working Papers 8013, National Bureau of Economic Research, Inc.
  4. 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.
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