Agglomeration Effects in Colombia

29 Pages Posted: 7 Mar 2016

See all articles by Gilles Duranton

Gilles Duranton

University of Pennsylvania - Real Estate Department

Date Written: March 2016

Abstract

I estimate an elasticity of wages with respect to city population of about 5 percent for Colombian cities. This finding is robust to a number of econometric concerns. The second main finding is a negative effect of market access on wages. Third main finding regards stronger agglomeration effects in the informal sector. In turn, this explains a range of other negative findings, including only weak evidence in favor of human capital externalities, no evidence of a complementarity between cities and skills, and an absence of learning effects. I do not find measurable effects of roads or amenities on wages either.

Suggested Citation

Duranton, Gilles, Agglomeration Effects in Colombia (March 2016). Journal of Regional Science, Vol. 56, Issue 2, pp. 210-238, 2016, Available at SSRN: https://ssrn.com/abstract=2742981 or http://dx.doi.org/10.1111/jors.12239

Gilles Duranton (Contact Author)

University of Pennsylvania - Real Estate Department ( email )

Philadelphia, PA 19104-6330
United States

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