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Urban non-urban agglomeration divide: is there a gap in productivity and wages?

Author

Listed:
  • Eleonora BARTOLONI

    (ISTAT)

  • Andrea MARINO

    (ISTAT)

  • Maurizio BAUSSOLA

    (DISCE, Università Cattolica)

  • Davide ROMANIELLO

    (DISCE, Università Cattolica)

Abstract

of the paper. This paper investigates the productivity-wage relation in the Italian Lombardy region using a novel and integrated database of firms’ plant. We find that agglomeration economies play a significant role in affecting productivity and wages differentials at the local level. However, this effect depends on the technological and knowledge-based resources characterising the industrial mix within the urban and non-urban agglomerations, also controlling for firm-specific factors concerning, in particular, job-related characteristics. High-density urban areas show a positive wage gap in the high technology and knowledge-intensive services, brought about higher productivity. In contrast, manufacturing plants show a reduction of the gap only partially offset by sectoral specificities.

Suggested Citation

  • Eleonora BARTOLONI & Andrea MARINO & Maurizio BAUSSOLA & Davide ROMANIELLO, 2020. "Urban non-urban agglomeration divide: is there a gap in productivity and wages?," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises148-11, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie2:dises2047
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    More about this item

    Keywords

    labour productivity; wage determination; spatial analysis;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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