IDEAS home Printed from https://ideas.repec.org/p/uae/wpaper/0210.html

The region of Madrid: Effects of agglomeration vs. centralisation

Author

Listed:
  • Carlos Iglesias Fernández
  • Raquel Llorente Heras
  • Diego Dueñas Fernández

Abstract

Madrid is an atypical territory among the Spanish regions. In comparison with other areas, this region presents high labour activity rates (63.68 percent) and employment (59.7 percent) alongside low rates of unemployment (6.25 percent). However, this aggregated labour dynamism is not generalized to the whole region of Madrid, as important territorial differences exist. This paper offers an analysis of the territorial characteristics of the regional labour market in Madrid. With this motive in mind, we have developed the following two types of analysis: firstly, we classified the municipalities of Madrid based on labour indicators using alternative methodologies (two-step cluster and k-means procedure) that mainly demonstrate the existence of a dichotomising structure of the labour market associated with the presence of centralisation and agglomeration patterns; secondly, we developed several probability models (logits) that define and determine the previous territorial clusters showing important centralisation effects. This work establishes an interesting methodology which could be applied to other regions facilitating comparisons between regions. In addition, territory differentiation is necessary in order to deal with the future regional labour policy. The Region of Madrid can be used as a typical example of regional labour market centralisation.

Suggested Citation

  • Carlos Iglesias Fernández & Raquel Llorente Heras & Diego Dueñas Fernández, 2010. "The region of Madrid: Effects of agglomeration vs. centralisation," Working Papers 02/10, Instituto Universitario de Análisis Económico y Social.
    • Handle: RePEc:uae:wpaper:0210
    as

    Download full text from publisher

    File URL: http://www3.uah.es/iaes/publicaciones/DT_02_10.pdf
    File Function: First version, 2010
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gilles Duranton & Diego Puga, 2000. "Diversity and Specialisation in Cities: Why, Where and When Does it Matter?," Urban Studies, Urban Studies Journal Limited, vol. 37(3), pages 533-555, March.
    2. Leo Sveikauskas, 1975. "The Productivity of Cities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 89(3), pages 393-413.
    3. Wheaton, William C. & Lewis, Mark J., 2002. "Urban Wages and Labor Market Agglomeration," Journal of Urban Economics, Elsevier, vol. 51(3), pages 542-562, May.
    4. E. Paul Durrenberger, 2005. "Labour," Chapters, in: James G. Carrier (ed.), A Handbook of Economic Anthropology, chapter 8, Edward Elgar Publishing.
    5. Uwe Blien & Franziska Hirschenauer & Van Phan thi Hong, 2005. "Classification of regional labour markets for purposes of research and of labour market policy," ERSA conference papers ersa05p766, European Regional Science Association.
    6. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    7. Christine Aumayr, 2006. "European Region Types: A Cluster Analysis of European NUTS 3 Regions," ERSA conference papers ersa06p836, European Regional Science Association.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matthias Wrede, 2013. "Heterogeneous skills and homogeneous land: segmentation and agglomeration," Journal of Economic Geography, Oxford University Press, vol. 13(5), pages 767-798, September.
    2. Elsie L. Echeverri-Carroll & Sofia G. Ayala, 2011. "Urban Wages: Does City Size Matter?," Urban Studies, Urban Studies Journal Limited, vol. 48(2), pages 253-271, February.
    3. Moretti, Enrico, 2011. "Local Labor Markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 14, pages 1237-1313, Elsevier.
    4. Gordon H. Hanson, 2000. "Scale Economies and the Geographic Concentration of Industry," NBER Working Papers 8013, National Bureau of Economic Research, Inc.
    5. Florian Noseleit, 2020. "The Role of Entry and Market Selection for the Dynamics of Regional Diversity and Specialization," Regional Studies, Taylor & Francis Journals, vol. 49(1), pages 76-94, July.
    6. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    7. Pierre Philippe Combes & Gilles Duranton & Henry G. Overman, 2005. "Agglomeration and the adjustment of the spatial economy§," Papers in Regional Science, Wiley Blackwell, vol. 84(3), pages 311-349, August.
    8. Fujita, Masahisa & Thisse, Jacques-François, 2009. "New Economic Geography: An appraisal on the occasion of Paul Krugman's 2008 Nobel Prize in Economic Sciences," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 109-119, March.
    9. Marion Drut & Aurélie Mahieux, 2014. "Correcting agglomeration economies: How air pollution matters," Working Papers hal-01007019, HAL.
    10. Peter Wostner, 2003. "Regional Disparities in Transition Economies: the case of Slovenia," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2003(1).
    11. Huang, Qiong & Chand, Satish, 2015. "Spatial spillovers of regional wages: Evidence from Chinese provinces," China Economic Review, Elsevier, vol. 32(C), pages 97-109.
    12. Mounir Amdaoud & César Ducruet & Marc‐Antoine Faure, 2022. "The mutual specialization of port and urban functions: The case of France," Papers in Regional Science, Wiley Blackwell, vol. 101(2), pages 439-460, April.
    13. Madhuri Mahato & Julie Vardhan, 2022. "The spatial distribution of self-employment — evidence from Jharkhand," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 291-304, December.
    14. Elisabet Viladecans Marsal, 2002. "The growth of cities: Does agglomeration matter?," Working Papers 2002/3, Institut d'Economia de Barcelona (IEB).
    15. Aurélie LALANNE & Guillaume POUYANNE, 2012. "Ten years of metropolization in economics: a bibliometric approach (In French)," Cahiers du GREThA (2007-2019) 2012-11, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    16. William C. Strange, 2009. "Viewpoint: Agglomeration research in the age of disaggregation," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 1-27, February.
    17. Theodore Tsekeris & Klimis Vogiatzoglou, 2014. "Public infrastructure investments and regional specialization: empirical evidence from Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(3), pages 265-289, August.
    18. Feldman, Maryann P. & Kogler, Dieter F., 2010. "Stylized Facts in the Geography of Innovation," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 381-410, Elsevier.
    19. Satyajit Chatterjee, 2004. "On the Contribution of Agglomeration Economies to Spatial Concentration of US Employment," Econometric Society 2004 North American Summer Meetings 164, Econometric Society.
    20. Henry Overman & Stephen Redding & Anthony J. Venables, 2001. "The Economic Geography of Trade, Production, and Income: A Survey of Empirics," CEP Discussion Papers dp0508, Centre for Economic Performance, LSE.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uae:wpaper:0210. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Laura Suarez (email available below). General contact details of provider: https://edirc.repec.org/data/seuahes.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.