Match!

Can NEG explain the spatial distribution of wages of Chile

Published on Feb 1, 2015in Tijdschrift voor economische en sociale geografie0.86
· DOI :10.1111/tesg.12088
Dusan Paredes6
Estimated H-index: 6
Cite
Abstract
The new economic geography (NEG) has been tested to explain the spatial concentration of wages in developed countries, but it has not been evaluated for developing countries where the excessive spatial concentration seems to be related with negative consequences on the economic development. This paper covers this gap in the literature estimating by first time a NEG model for a developing country such as Chile, pursuing two research question: (1) Can the NEG explain the spatial distribution of wages in a developing country as Chile?; and (2) How can the NEG be used to infer information about the future level of spatial concentration of wages in Chile? The results suggest that the case of Chile is poorly explained by the NEG and even higher level of spatial concentration should be expected in the future. These results indicate that the empirical application of NEG is not trivial for developing countries, and some considerations such as inclusion of the first nature or analysis at micro data level must be incorporated by future researches.
  • References (45)
  • Citations (3)
Cite
References45
Newest
Published on Aug 1, 2012in Journal of Regional Science1.94
Miguel Gómez-Antonio4
Estimated H-index: 4
(Complutense University of Madrid),
Bernard Fingleton34
Estimated H-index: 34
(University of Strathclyde)
This paper examines the relationship between the level of public infrastructure and the level of productivity using panel data for the Spanish provinces over the period 1984-2004, a period which is particularly relevant due to the substantial changes occurring in the Spanish economy at that time. The underlying model used for the data analysis is based on the wage equation, which is one of a handful of simultaneous equations which when satisfied correspond to the short-run equilibrium of New Eco...
Published on Aug 1, 2012
Dusan Paredes6
Estimated H-index: 6
,
Victor Iturra5
Estimated H-index: 5
,
Marcelo Lufin1
Estimated H-index: 1
The previous literature identifies the high and persistent income inequality of Chile, but the geography of this inequality is still unexplored. To evaluate this dimension, we propose a three-stage decomposition of the Theil index at regional, province and county level. Our decomposition indicates that between 1992 and 2009, 21% of the inequality is attributable to these spatial scales. Inside of them, the highest inequality exists between counties and between regions, although they follow diffe...
Published on Jan 1, 2012
Dusan Paredes Araya1
Estimated H-index: 1
,
Victor Iturra5
Estimated H-index: 5
We estimate the spatial substitution bias based on the difference between a price index (PI) and the true cost of living (COL). This bias is computed at three geographical scales, using several fixed baskets and across different expenditures quartiles. Our results show a significant substitution bias for small geographical units. The choice of the base basket is also relevant for the bias estimation. Finally, the spatial substitution bias is larger for upper side of the expenditure distribution ...
Jesús López Rodríguez9
Estimated H-index: 9
(Yahoo!),
Andrés Faíña Medín6
Estimated H-index: 6
(Yahoo!),
Bolea Cosmin-Gabriel1
Estimated H-index: 1
This paper looks at the link between wage disparities and market access for the Romanian regions. First, we derive an econometric specification which relates the income levels of a particular location with a weighted sum of the volume of economic activities of the surrounding locations (market access). Then, empirically, we estimate this econometric specification for a sample of 42 Romanian regions in the year 2006. The results show that market access is statistically significant and quantitativ...
Published on Feb 1, 2011in Annals of Regional Science1.07
Dusan Paredes6
Estimated H-index: 6
(UIUC: University of Illinois at Urbana–Champaign)
This paper proposes a methodology for a spatial cost index of housing that considers spatial heterogeneity in properties across regions. The index is built by combining three different techniques to reduce the spatial heterogeneity in housing: Quasi-experimental methods, hedonic prices and Fisher spatial price index. Using microdata from the Chilean survey CASEN 2006, it is shown that the quasi-experimental method called Mahalanobis metric within propensity score calipers (MMWPS) leads to a sign...
Published on Sep 3, 2010in Geographical Analysis1.96
Sergio J. Rey28
Estimated H-index: 28
(SDSU: San Diego State University)
This paper suggests some new empirical strategies for analyzing the evolution of regional income distributions over time and space. These approaches are based on extensions to the classical Markov transition matrices that allow for a more comprehensive analysis of the geographical dimensions of the transitional dynamics. This is achieved by integrating some recently developed local spatial statistics within a Markov framework. Insights to not only the frequency with which one economy may transit...
Published on Jan 1, 2010
David Pines19
Estimated H-index: 19
,
Efraim Sadka34
Estimated H-index: 34
,
Itzhak Zilcha25
Estimated H-index: 25
This volume, first published in 1998, presents developments in urban geography, club theory and local public finance, and international trade which contribute to the explanation of the modern opposing trends of integration and segregation. Part I explores the role of transportation costs, crowding, and preferences for a large variety of goods in shaping the main features of urban geography. Part II contains four contributions on fundamental issues associated with the provision of collective good...
Published on Jun 1, 2009in Journal of International Economics2.22
Mark D. Partridge42
Estimated H-index: 42
(OSU: Ohio State University),
Dan S. Rickman34
Estimated H-index: 34
(OSU: Oklahoma State University–Stillwater)
+ 1 AuthorsRose Olfert20
Estimated H-index: 20
(U of S: University of Saskatchewan)
The tyranny of distance in terms of its effect on median earnings and housing costs is examined for rural and urban U.S. counties. First, we develop a series of distance metrics for an area's remoteness from multiple tiers of the urban hierarchy. Second, we consider geographical access of buyers and sellers through market potential measures typical of those used in empirical studies of the New Economic Geography. We estimate penalties of about 5 to 9% for median earnings and 12 to 17% for housin...
Published on Apr 1, 2009
Steven Brakman29
Estimated H-index: 29
(UG: University of Groningen),
Harry Garretsen36
Estimated H-index: 36
(UG: University of Groningen),
Charles van Marrewijk24
Estimated H-index: 24
(UU: Utrecht University)
Published on Jan 1, 2009
Steven Brakman6
Estimated H-index: 6
,
Harry Garretsen36
Estimated H-index: 36
,
Charles van Marrewijk2
Estimated H-index: 2
Cited By3
Newest
Victor Iturra5
Estimated H-index: 5
It is well established in the literature that amenities are important in affecting regional patterns by influencing both workers' and firms' location decisions. Using the seminal contribution made by Beeson and Eberts, this study performs a wage change decomposition into amenity (workers) and productivity (firms) components. The results reveal that firms are more significant when explaining high average wage regions in Chile, since they derive more benefits from agglomeration economies and natur...
Published on Apr 1, 2012
Dusan Paredes1
Estimated H-index: 1
This paper presents an empirical framework for analyzing the spatial wage inequality in a Latin American country: Chile. This country is mainly characterized by two stylized facts: the high spatial concentration around metropolitan areas and the key role of natural resources. We consider both elements with a competition between NEG versus amenity framework. Both theories are combined with human capital through a Multilevel Analysis. The results show the low performance of NEG for Chile and how t...
Published on Jan 1, 2012
Saeed Rasekhi3
Estimated H-index: 3
(University of Mazandaran),
Marzieh Dindar Rostami1
Estimated H-index: 1
The purpose of this study is to investigate the factors affecting the manufacturing industry wage among selected developing countries based on new economic geography theory. More specifically, we use a panel data model to study the spatial structure of wages in 136 countries for the period 1998-2007. The results indicate that this theory provides a good description of the spatial structure of wages. We find that the market size and the distance-weighted have positive relationships with wage. How...
View next paperWages and Regional Economic Potential in Poland: the New Economic Geography Approach