Wage premia in employment clusters: how important is worker heterogeneity/ created by Shihe Fu and Stephen L. Ross

By:

Fu, Shihe [author]

Contributor(s):

Ross, Stephen [co author]

Material type: Text

TextSeries: Journal of labor economics ; Volume 31 , number 2 , part 1Chicago: University of Chicago Press, 2013Content type:

text

Media type:

unmediated

Carrier type:

volume

ISSN:

0734306X

Subject(s):

Agglomeration -- Wages -- Human Capital Externalities

LOC classification:

HD5706 JOU

Online resources:

Click here to access online

Abstract: This article tests whether the correlation between wages and concentration of employment can be explained by unobserved worker productivity. Residential location is used as a proxy for unobserved productivity, and average commute time to workplace is used to test whether location-based productivity differences are compensated away by longer commutes. Analyses using confidential data from the 2000 Decennial Census find that estimates of agglomeration wage premia within metropolitan areas are robust to comparisons within residential location and that estimates do not persist after controlling for commuting costs, suggesting that the productivity differences across locations are due to location, not individual unobservables.

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Holdings
Item type	Current library	Call number	Vol info	Copy number	Status	Notes	Date due	Barcode
Journal Article	Main Library - Special Collections	HD 5706 JOU (Browse shelf(Opens below))	Vol. 31, no. 2 (pages 271-304)	SP17580	Not for loan	For In-house use only

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This article tests whether the correlation between wages and concentration of employment can be explained by unobserved worker productivity. Residential location is used as a proxy for unobserved productivity, and average commute time to workplace is used to test whether location-based productivity differences are compensated away by longer commutes. Analyses using confidential data from the 2000 Decennial Census find that estimates of agglomeration wage premia within metropolitan areas are robust to comparisons within residential location and that estimates do not persist after controlling for commuting costs, suggesting that the productivity differences across locations are due to location, not individual unobservables.

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