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People, places and firms: improving our understanding of wage and productivity disparities

Author

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  • Gomez Hernandez, Yadira
  • Overman, Henry G.

Abstract

In many countries spatial disparities in wages and productivity are large and persistent. This raises questions about the causes and consequences of such disparities. Two inter-related issues – the sorting of high skilled workers and the productivity benefits of urban density – are central to the way in which urban economists have approached these questions. In this commentary, we argue that despite the emerging consensus that sorting matters for wage disparities, the literature has made less progress on other dimensions of these disparities and a number of methodological issues remain unresolved.

Suggested Citation

  • Gomez Hernandez, Yadira & Overman, Henry G., 2026. "People, places and firms: improving our understanding of wage and productivity disparities," LSE Research Online Documents on Economics 141465, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:141465
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    File URL: https://researchonline.lse.ac.uk/id/eprint/141465/
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    Keywords

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    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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