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Market Access and wages: A spatially heterogeneous approach

Author

Listed:
  • Dusan Paredes

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

  • Victor Iturra

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

Abstract

We empirically test the positive relationship between market access and wages stated by New Economic Geography. Contrary to most estimation in other countries, we find evidence of significant spatial heterogeneity of this elasticity across Chilean communities.

Suggested Citation

  • Dusan Paredes & Victor Iturra, 2012. "Market Access and wages: A spatially heterogeneous approach," Documentos de Trabajo en Economia y Ciencia Regional 29, Universidad Catolica del Norte, Chile, Department of Economics, revised Sep 2012.
  • Handle: RePEc:cat:dtecon:dt201215
    as

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    File URL: https://sites.google.com/a/ucn.cl/wpeconomia/archivos/WP2012-15.pdf
    File Function: First version, 2012
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    References listed on IDEAS

    as
    1. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2008. "Spatial wage disparities: Sorting matters!," Journal of Urban Economics, Elsevier, vol. 63(2), pages 723-742, March.
    2. Maureen Kilkenny, 1995. "Transport Costs and Rural Development," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 95-wp133, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Niebuhr, Annekatrin, 2004. "Market Access and Regional Disparities: New Economic Geography in Europe," Discussion Paper Series 26148, Hamburg Institute of International Economics.
    4. Steven Brakman & Harry Garretsen & Marc Schramm, 2004. "The Spatial Distribution of Wages: Estimating the Helpman‐Hanson Model for Germany," Journal of Regional Science, Wiley Blackwell, vol. 44(3), pages 437-466, August.
    5. Lagos, Gustavo & Blanco, Edgar, 2010. "Mining and development in the region of Antofagasta," Resources Policy, Elsevier, vol. 35(4), pages 265-275, December.
    6. Dusan Paredes & Víctor Iturra, 2011. "Substitution Bias and the Construction of a Spatial Cost of Living Index," Documentos de Trabajo en Economia y Ciencia Regional 13, Universidad Catolica del Norte, Chile, Department of Economics, revised May 2011.
    7. Deller, Steven, 2011. "Spatial heterogeneity in the wage curve," Economics Letters, Elsevier, vol. 113(3), pages 231-233.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Li, Guo & Mroz, Thomas A., 2013. "Expected income and labor market choices of US married couples: A locally weighted regression approach," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 985-995.

    More about this item

    Keywords

    New Economic Geography; wages; market access; Geographically Weighted regression;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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