We would like to thank the editor and two anonymous referees for valuable comments and suggestions.
THE EFFECTS OF AGGLOMERATION ON WAGES: EVIDENCE FROM THE MICRO-LEVEL†
Article first published online: 23 APR 2013
© 2013, Wiley Periodicals, Inc.
Journal of Regional Science
Volume 53, Issue 3, pages 443–463, August 2013
How to Cite
Fingleton, B. and Longhi, S. (2013), THE EFFECTS OF AGGLOMERATION ON WAGES: EVIDENCE FROM THE MICRO-LEVEL. Journal of Regional Science, 53: 443–463. doi: 10.1111/jors.12020
- Issue published online: 24 JUL 2013
- Article first published online: 23 APR 2013
- Manuscript Accepted: AUG 2012
- Manuscript Revised: JUL 2012
- Manuscript Received: SEP 2011
This paper estimates individual wage equations to test two rival non-nested theories of economic agglomeration, namely New Economic Geography (NEG), as represented by the NEG wage equation and urban economic (UE) theory, in which wages relate to employment density. In the U.K. context, we find that for male respondents, there is no significant evidence that wage levels are an outcome of the mechanisms suggested by NEG or UE theory, but this is not the case for female respondents. We speculate on the reasons for the gender difference.