AGGLOMERATION EFFECTS IN COLOMBIA

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 ef...

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Bibliographic Details
Published in:Journal of regional science 2016-03, Vol.56 (2), p.210-238
Main Author: Duranton, Gilles
Format: Article
Language:English
Subjects:
Agglomeration
Cities
Complementarity
Econometrics
Elasticity
Externalities
Human capital
Informal economy
Skills
Studies
Wages & salaries
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Summary: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.
ISSN:0022-4146
1467-9787
DOI:10.1111/jors.12239