Spatial Equilibrium Approach to the Analysis of Income Differentials Across Russian Cities

31 Pages Posted: 7 Sep 2016 Last revised: 9 Sep 2016

See all articles by Alexander Skorobogatov

Alexander Skorobogatov

National Research University Higher School of Economics

Date Written: September 5, 2016

Abstract

This paper discusses a mechanism underlying the input allocations and income distributions across Russian cities of different ages. The empirical strategy is based on using the extended version of the Glaeser-Gottlieb model to guide the interpretation of regression estimates. The results are in line with previous evidence. Newer cities tend to pay higher real wages, but this is offset by the poor consumption amenities. Their opportunities to pay more are related to their productivity advantages resulting from their higher shares of skilled workforce, and more available natural resources. At the same time, these advantages and disadvantages tend to disappear with time, which gives rise to the income convergence.

Keywords: exhaustible resources, urban development, consumer amenities

JEL Classification: R12, Q32, O13

Suggested Citation

Skorobogatov, Alexander, Spatial Equilibrium Approach to the Analysis of Income Differentials Across Russian Cities (September 5, 2016). Higher School of Economics Research Paper No. WP BRP 149/EC/2016. Available at SSRN: https://ssrn.com/abstract=2834879 or http://dx.doi.org/10.2139/ssrn.2834879

Alexander Skorobogatov (Contact Author)

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, RI Moscow 119017
Russia

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