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Alternative theories for explaining the spatial wage inequality: a multilevel competition among human capital, NEG and amenities

  • Dusan Paredes

    ()

    (IDEAR - Department of Economics, Universidad Católica del Norte - Chile)

This paper presents an empirical framework for analyzing the spatial wage inequality in a Latin American country: Chile. This country is mainly characterized by two stylized facts: the high spatial concentration around metropolitan areas and the key role of natural resources. We consider both elements with a competition between NEG versus amenity framework. Both theories are combined with human capital through a Multilevel Analysis. The results show the low performance of NEG for Chile and how the natural resources are a winner causal mechanism for the case. Additionally, the spatial wage variability is extremely small when it is compared with the wage variation at individual level.

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File URL: https://sites.google.com/a/ucn.cl/wpeconomia/archivos/WP2012-06.pdf
File Function: First version, 2012
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Paper provided by Universidad Catolica del Norte, Chile, Department of Economics in its series Documentos de Trabajo en Economia y Ciencia Regional with number 20.

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Length: 24 pages
Date of creation: Apr 2012
Date of revision: Apr 2012
Handle: RePEc:cat:dtecon:dt201206
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  2. Dusan Paredes, 2010. "Can NEG Explain the Spatial Distribution of Wages of Chile?," Documentos de Trabajo en Economia y Ciencia Regional 02, Universidad Catolica del Norte, Chile, Department of Economics, revised Sep 2010.
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  5. Víctor Iturra & Dusan Paredes, 2011. "Construction of a Spatial Housing Price Index by Estimating an Almost Ideal Demand System," Documentos de Trabajo en Economia y Ciencia Regional 11, Universidad Catolica del Norte, Chile, Department of Economics, revised May 2011.
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