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http://ssrn.com/abstract=250981
 
 

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Urban Wages and Labor Market Agglomeration


William C. Wheaton


Massachusetts Institute of Technology (MIT) - Department of Economics

Mark J. Lewis


affiliation not provided to SSRN

September 28, 2000


Abstract:     
Using the 5% public use micro sample of the 1990 U.S. census, we find that observationally equivalent workers in the manufacturing sector earn higher wages when they are in urban labor markets that have a larger share of national or metropolitan employment in their same occupation and industry groups. Quantitatively, the effect is large, with an elasticity (measured at the means) of between 1.2 and 3.6 for these effects. We interpret the willingness of firms to pay more for equivalent workers in dense markets as evidence of an agglomeration economy in urban labor.

Number of Pages in PDF File: 26

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Date posted: November 22, 2000  

Suggested Citation

Wheaton, William C. and Lewis, Mark J., Urban Wages and Labor Market Agglomeration (September 28, 2000). Available at SSRN: http://ssrn.com/abstract=250981 or http://dx.doi.org/10.2139/ssrn.250981

Contact Information

William C. Wheaton (Contact Author)
Massachusetts Institute of Technology (MIT) - Department of Economics ( email )
50 Memorial Drive
E52-252B
Cambridge, MA 02142
United States
617-253-1723 (Phone)
617-253-1330 (Fax)
Mark J. Lewis
affiliation not provided to SSRN
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