The Impact of Agglomeration Effects and Accessibility on Wages

37 Pages Posted: 3 Nov 2011

See all articles by Anna Matas

Anna Matas

Autonomous University of Barcelona

Josep Lluís Raymond

Autonomous University of Barcelona

Josep-Lluís Roig

Autonomous University of Barcelona

Date Written: November 2, 2011

Abstract

This paper contributes to the empirical literature on the effects of agglomeration and road accessibility on productivity of firms by looking at the case of Spain. We approach productivity indirectly by using individual wages allocated at the NUTS III level. We use a repeated cross-section of individual micro-data for the years 1995, 2002 and 2006. The availability of interprovincial travel time data for each of the three years allows controlling for transport improvements over the period by using a market potential variable. Additionally, agglomeration is approached by employment density and we control for localization economies, human capital externalities and a large set of individual and workplace characteristics. Estimating by instrumental variables, our results show a positive and significant effect of market accessibility on wages and non linear effect for employment density.

Suggested Citation

Matas, Anna and Raymond, Josep Lluís and Roig, Josep-Lluís, The Impact of Agglomeration Effects and Accessibility on Wages (November 2, 2011). Available at SSRN: https://ssrn.com/abstract=1953545 or http://dx.doi.org/10.2139/ssrn.1953545

Anna Matas (Contact Author)

Autonomous University of Barcelona ( email )

Plaça Cívica
Cerdañola del Valles
Barcelona, Barcelona 08193
Spain

Josep Lluís Raymond

Autonomous University of Barcelona ( email )

Plaça Cívica
Cerdañola del Valles
Barcelona, Barcelona 08193
Spain

Josep-Lluís Roig

Autonomous University of Barcelona ( email )

Plaça Cívica
Cerdañola del Valles
Barcelona, Barcelona 08193
Spain

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