Locational Choice and Spatial Wage Inequality

Locational Choice and Spatial Wage Inequality PDF Author: Felix Schran
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
During the last few decades, aggregate wage growth has been very unevenly distributed across space in Germany. While wages in Southern German local labor markets rose by up to 28 log points, they increased only modestly or even declined in the north. Similar results apply to employment changes. Overall, this has led to a strong positive correlation between local wage and employment growth. What is driving these differential trends across space? This paper examines to what extent regions with growing employment are increasingly paying workers higher wage premia or, in contrast, to what extent the quality of workers in growing regions has risen. To decouple the demand for skill and supply of skill from each other, I estimate how regional wage premia have changed over time using administrative panel data that allow me to hold constant changes in unobserved worker quality. I find that wage premia in regions with expanding employment did not rise more than in regions with declining employment. Instead, the quality of workers in growing regions went up. I investigate the importance of various possible observables for this relationship including local amenity differences, changes in occupation and industry structure as well as variation in education rates. Last, I explore the impact of changing wage premia and changing worker quality on the recent rise in the density wage premium.

Locational Choice and Spatial Wage Inequality

Locational Choice and Spatial Wage Inequality PDF Author: Felix Schran
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
During the last few decades, aggregate wage growth has been very unevenly distributed across space in Germany. While wages in Southern German local labor markets rose by up to 28 log points, they increased only modestly or even declined in the north. Similar results apply to employment changes. Overall, this has led to a strong positive correlation between local wage and employment growth. What is driving these differential trends across space? This paper examines to what extent regions with growing employment are increasingly paying workers higher wage premia or, in contrast, to what extent the quality of workers in growing regions has risen. To decouple the demand for skill and supply of skill from each other, I estimate how regional wage premia have changed over time using administrative panel data that allow me to hold constant changes in unobserved worker quality. I find that wage premia in regions with expanding employment did not rise more than in regions with declining employment. Instead, the quality of workers in growing regions went up. I investigate the importance of various possible observables for this relationship including local amenity differences, changes in occupation and industry structure as well as variation in education rates. Last, I explore the impact of changing wage premia and changing worker quality on the recent rise in the density wage premium.

Spatial Inequality and Development

Spatial Inequality and Development PDF Author: S. M. Ravi Kanbur
Publisher: Oxford University Press, USA
ISBN: 0199278636
Category : Business & Economics
Languages : en
Pages : 435

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Book Description
"This is an introduction to spatial and regional inequality. Drawing on data from 25 countries from around the world, it examines the questions: What exactly is spatial inequality? Why does it matter? And what should be the policy response to it?"--Provided by publisher.

A Spatial Analysis of Wage Inequality Among Foreign-born Workers in U.S. Metropolitan Areas

A Spatial Analysis of Wage Inequality Among Foreign-born Workers in U.S. Metropolitan Areas PDF Author: Chuncui Fan
Publisher:
ISBN:
Category :
Languages : en
Pages : 173

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Book Description
This dissertation extends and connects prior research on wage inequality and immigration to the U.S. Focusing on evidences derived from cross-metropolitan comparisons, it finds unique temporal trends and spatial patterns of wage inequality among immigrant workers, identifies wage differentials among immigrant groups by individual characteristics, and evaluates the roles of different labor market conditions in determining changes in immigrant wage inequality and their spatial variations. These findings point to the fact that race and ethnicity and geography are two key factors in understanding immigrant wage inequality. While race and ethnicity play an increasingly important role in determining wage disparities among immigrant workers, wage inequality of immigrant workers also depends on their settlement patterns and labor market conditions in their destinations. Wage inequality among immigrants in the U.S. is a function of different types of metropolitan areas, which serve as urban contexts to accommodate racial and ethnic concentration of immigrant workers and their divergent historical economic incorporation. Using the Integrated Public Use Microdata Sample (IPUMS) data of the Decennial Census for the years 1980, 1990, 2000 and pooled 5-year ACS data in 2009, my empirical analysis shows that immigrants had wider wage gap and higher rates of inequality growth during the past three decades than the native-born workers in the U.S. There was great heterogeneity in urban wage inequality among immigrant workers. But all metropolitan areas experienced a rapid growth in wage inequality since 1980. A decomposition of wage inequality of the overall labor force in the U.S. by nativity shows that immigrant wage inequality and their local income shares both had an impact on the contribution of immigrant wage inequality to wage inequality of the overall labor force. An examination of immigrant wage differentials between educational and racial and ethnic groups finds rapid growths in three-decade wage gaps between college graduates and high-school dropouts and that between White and Hispanic foreign-born workers. Among different sources of growth in immigrant wage inequality, the contribution of residual wage inequality declined moderately while the contribution of race and ethnicity continued to grow rapidly during the past three decades. Finally, focusing on labor market level attributes, panel regression models suggest that city population size, R & D spending, structural shifts from manufacturing to services employment, de-unionization in the labor force all contributed significantly to changes in overall and residual wage inequality among both male and female immigrant workers in U.S. metropolitan areas. To certain extent, geography also explained inter-metropolitan variations in overall wage inequality and in residual wage inequality among immigrant workers. For both genders, wage inequalities among immigrant workers tended to be lower in former immigrant gateway metros than in low-immigrant metros. Major-continuous gateway cities were more likely to have significantly higher levels of residual wage inequality among male immigrant workers than low-immigrant metropolitan areas.

Spatial Wage Inequality in North America and Western Europe

Spatial Wage Inequality in North America and Western Europe PDF Author: Luis Bauluz
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
The rise of economic inequalities in advanced economies has been often linked with the growth of spatial inequalities within countries, yet there is limited comparative research that studies the relationship between national and subnational economic inequality. This paper presents the first systematic attempt to create internationally comparable evidence showing how different countries perform in terms of geographic wage inequalities. We create cross-country comparable measures of spatial wage disparities between and within similarly-defined local labour market areas (LLMAs) for Canada, France, (West) Germany, the UK and the US since the 1970s, and assess their contribution to national inequality. By the end of the 2010s, spatial inequalities in LLMA mean wages are similar in Canada, France, Germany and the UK; the US exhibits the highest degree of spatial inequality. Over the study period, spatial inequalities have nearly doubled in all countries, except for France where spatial inequalities have fallen back to 1970s levels. Due to a concomitant increase in within-place inequality, the contribution of places in explaining national wage inequality has remained fairly constant over the 40-year study period, except in the UK where we document a significant increase. Whilst common global social, economic and technological shocks are important drivers of spatial inequality, this variation in levels and trends of spatial inequality opens the way to comparative research exploring the role of national institutions in mediating how global shocks translate into economic disparities between places.

Spatial Wage Inequality in North America and Western Europe

Spatial Wage Inequality in North America and Western Europe PDF Author: Luis Bauluz
Publisher:
ISBN:
Category : Income distribution
Languages : en
Pages : 0

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Book Description
The rise of economic inequalities in advanced economies has been often linked with the growth of spatial inequalities within countries, yet there is limited comparative research that studies the relationship between national and subnational economic inequality. This paper presents the first systematic attempt to create internationally comparable evidence showing how different countries perform in terms of geographic wage inequalities. We create cross-country comparable measures of spatial wage disparities between and within similarly-defined local labour market areas (LLMAs) for Canada, France, (West) Germany, the UK and the US since the 1970s, and assess their contribution to national inequality. By the end of the 2010s, spatial inequalities in LLMA mean wages are similar in Canada, France, Germany and the UK; the US exhibits the highest degree of spatial inequality. Over the study period, spatial inequalities have nearly doubled in all countries, except for France where spatial inequalities have fallen back to 1970s levels. Due to a concomitant increase in within-place inequality, the contribution of places in explaining national wage inequality has remained fairly constant over the 40-year study period, except in the UK where we document a significant increase. Whilst common global social, economic and technological shocks are important drivers of spatial inequality, this variation in levels and trends of spatial inequality opens the way to comparative research exploring the role of national institutions in mediating how global shocks translate into economic disparities between places.

The New Oxford Handbook of Economic Geography

The New Oxford Handbook of Economic Geography PDF Author: Dariusz Wójcik
Publisher: Oxford University Press
ISBN: 0191072176
Category : Business & Economics
Languages : en
Pages : 1145

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Book Description
The first fifteen years of the 21st century have thrown into sharp relief the challenges of growth, equity, stability, and sustainability facing the world economy. In addition, they have exposed the inadequacies of mainstream economics in providing answers to these challenges. This volume gathers over 50 leading scholars from around the world to offer a forward-looking perspective of economic geography to understanding the various building blocks, relationships, and trajectories in the world economy. The perspective is at the same time grounded in theory and in the experiences of particular places. Reviewing state-of-the-art of economic geography, setting agendas, and with illustrations and empirical evidence from all over the world, the book should be an essential reference for students, researchers, as well as strategists and policy makers. Building on the success of the first edition, this volume offers a radically revised, updated, and broader approach to economic geography. With the backdrop of the global financial crisis, finance is investigated in chapters on financial stability, financial innovation, global financial networks, the global map of savings and investments, and financialization. Environmental challenges are addressed in chapters on resource economies, vulnerability of regions to climate change, carbon markets, and energy transitions. Distribution and consumption feature alongside more established topics on the firm, innovation, and work. The handbook also captures the theoretical and conceptual innovations of the last fifteen years, including evolutionary economic geography and the global production networks approach. Addressing the dangers of inequality, instability, and environmental crisis head-on, the volume concludes with strategies for growth and new ways of envisioning the spatiality of economy for the future.

Spatial Inequality and Development

Spatial Inequality and Development PDF Author: S. M. Ravi Kanbur
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 16

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Book Description


Spatial inequalities and regional development

Spatial inequalities and regional development PDF Author: Henk Folmer
Publisher: Springer
ISBN: 9789401730471
Category : Business & Economics
Languages : en
Pages : 258

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Book Description
In September 1977 a 'Regional Science Symposium' was held at the Faculty of Economics of the University of Groningen in the Netherlands. Organized because of the recent establishment at the Faculty of Economics of a group that is engaged in teaching and research in the field of regional science, the aim of the symposium was to make university members more familiar with regional science and to introduce the newly created group to the national and international scene. Two separate topics were selected, of potential interest to both re searchers and policy-makers. The first, spatial inequalities and regional development, was chosen because of its central place in regional science. Authors from several disciplines were asked to approach this theme from a general, policy orientated point of view. This ensured the enlightenment of the various dimensions of spatial inequality and its implications for regional policy. The results have been collected in the volume Spatial Inequalities and Regional Development. The second theme focused on spatial statistical analysis. This branch of statistics is a relatively new one which receives growing attention among researchers in the field of applied regional science. The meeting on this topic concentrated on new results of research on the use of appro priate statistical and econometric methods for analyzing spatial data. The papers concerned have been collected into another volume, Explora tory and Explanatory Statistical Analysis of Spatial Data.

Spatial Decomposition of Inequality

Spatial Decomposition of Inequality PDF Author: Anthony Shorrocks
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
This paper reviews the theory and application of the decomposition methods commonly used to measure the impact of spatial location on income inequality. It establishes some new theoretical results with potentially wide applicability, and examines empirical evidence drawn from a large number of countries.

Essays in Spatial and Regional Economics

Essays in Spatial and Regional Economics PDF Author: Karl Richard Geisler
Publisher:
ISBN:
Category : Electronic books
Languages : en
Pages : 220

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Book Description
Chapter 1 - Minimum Wage Impacts on Firm Location Choice This chapter explores the impact of minimum wage legislation on firm location choice. In doing so, this chapter advances the literature in three ways. First, it provides an insight into for disparate findings in the literature on the impacts of minimum wage on employment. Second, it adds to the growing body of work that exploits geographical differences to test economic impacts. Third, by incorporating spatial economic theory into the theory of the firm, this chapter provides a simple yet powerful example of how firms use location choice as part of their profit-maximization decisions. Using a cross-border approach this chapter finds that 1) industries where customers come to the firm's location (`shopping' industries) locate with respect to population , while 2) industries with firms that deliver goods or services to their customers (`shipping' industries) choose to locate more heavily where statutory minimum wages are lower. Chapter 2 - Economic Impacts of Casino Legalization This chapter explores how the opening of casinos in riverboat states (Illinois, Indiana, Iowa, Louisiana, Mississippi, and Missouri) in the mid-1990s impacted county income and employment. Building on previous literature, this study extends the analysis beyond the county where the casino opens to explore the effects experienced by neighboring counties. Real per capita county income is found to increase in counties where casinos open while unemployment drops. Neighboring counties experience similar significant changes in these variables, though to a lesser magnitude. Where casinos are opened in adjacent counties, a competition effect is found that reduces the impacts below what either would have experienced without competition. Neighboring counties that both have casinos experience increases in income and decreases in unemployment similar to counties without casinos that are adjacent to casino counties. Chapter 3 -Economics and Avalanches This chapter illustrates the complementarities that exist between economists and avalanche professionals. It explores the continuities between the domains, and suggests potential gains to each as a result of integrated work. In particular, work by economists on risk aversion and choices made under uncertainty explain the demographics of who dies in avalanches. Using these insights will allow avalanche professionals to better target prevention products. In turn, the choices made by users faced with potential avalanche hazard can shed light on the nature of decision making that involves risk with serious consequences - both from real-world observation and revealed choice experiments - which can improve economists' overall understanding of how individuals relate to risk and uncertainty.