Disaggregating Density A Knowledge Spillover Analysis Using Geo-Coded Data
This paper exploits a geocoded, publicly audited, full population dataset on employment and wages in Swedenâ€™s city areas, to analyze the relationship between density of economic activity and individual wages. The analysis is based on 250-by-250 meter (about 0.15 miles), 1 km2, 9 km2 and 100 km2 squares. Fixed effects individual-level wage regressions confirm that workers are positively affected by proximity to economic activity, but that the results are dependent on spatial resolution. A doubling of density in a 250 meter square is associated with a 3.7 percent increase in wages, holding individual characteristics and industry structure constant. Basing the analysis on any of the larger squares decreases the elasticity by about one third, confirming the modifiable areal unit problem, and lending support to arguments in favor of the attenuation of human capital spillover effects.
|Date of creation:||Oct 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul M Romer, 1999.
"Endogenous Technological Change,"
Levine's Working Paper Archive
2135, David K. Levine.
- Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2004.
"Spatial Wage Disparities: Sorting Matters!,"
CEPR Discussion Papers
4240, C.E.P.R. Discussion Papers.
- Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, September.
- Ciccone, Antonio & Hall, Robert E, 1996.
"Productivity and the Density of Economic Activity,"
American Economic Review,
American Economic Association, vol. 86(1), pages 54-70, March.
- Antonio Ciccone & Robert E. Hall, 1995. "Productivity and the density of economic activity," Economics Working Papers 120, Department of Economics and Business, Universitat Pompeu Fabra.
- Antonio Ciccone & Robert E. Hall, 1993. "Productivity and the Density of Economic Activity," NBER Working Papers 4313, National Bureau of Economic Research, Inc.
- Edward L. Glaeser, 1997.
"Learning in Cities,"
Harvard Institute of Economic Research Working Papers
1814, Harvard - Institute of Economic Research.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Rosenthal, Stuart S. & Strange, William C., 2008. "The attenuation of human capital spillovers," Journal of Urban Economics, Elsevier, vol. 64(2), pages 373-389, September.
- James E. Rauch, 1991.
"Productivity Gains From Geographic Concentration of human Capital: Evidence From the Cities,"
NBER Working Papers
3905, National Bureau of Economic Research, Inc.
- Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November.
- Boyan Jovanovic & Rafael Rob, 1989. "The Growth and Diffusion of Knowledge," Review of Economic Studies, Oxford University Press, vol. 56(4), pages 569-582.
- Ã…ke E. Anderson & Martin J. Beckmann, 2009. "Economics of Knowledge," Books, Edward Elgar Publishing, number 12998.
- Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
- Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
- Alexandre Mas & Enrico Moretti, 2009.
"Peers at Work,"
American Economic Review,
American Economic Association, vol. 99(1), pages 112-45, March.
- Mas, Alexandre & Moretti, Enrico, 2006. "Peers at Work," CEPR Discussion Papers 5870, C.E.P.R. Discussion Papers.
- Mas, Alexandre & Moretti, Enrico, 2006. "Peers at Work," IZA Discussion Papers 2292, Institute for the Study of Labor (IZA).
- Alexandre Mas & Enrico Moretti, 2006. "Peers at Work," NBER Working Papers 12508, National Bureau of Economic Research, Inc.
- Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
- Roberta Capello, 2002. "Entrepreneurship and spatial externalities: Theory and measurement," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(3), pages 387-402.
- Börje Johansson & Johan Klaesson & Michael Olsson, 2003. "Commuters’ non-linear response to time distances," Journal of Geographical Systems, Springer, vol. 5(3), pages 315-329, November.
- Martin Andersson & Urban Gråsjö, 2009. "Spatial dependence and the representation of space in empirical models," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(1), pages 159-180, March.
- McCloskey, Donald & Klamer, Arjo, 1995. "One Quarter of GDP Is Persuasion," American Economic Review, American Economic Association, vol. 85(2), pages 191-95, May.
- Andersson, Martin & Klaesson, Johan, 2006. "Regional Interaction & Economic Diversity - exploring the role of geographically overlapping markets for a municipality’s diversity in retail and durables," Working Paper Series in Economics and Institutions of Innovation 49, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Helsley, Robert W. & Strange, William C., 1990. "Matching and agglomeration economies in a system of cities," Regional Science and Urban Economics, Elsevier, vol. 20(2), pages 189-212, September.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa12p930. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.