TY - BOOK AU - Fu,Shihe AU - Ross, Stephen TI - Wage premia in employment clusters: how important is worker heterogeneity SN - 0734306X AV - HD5706 JOU PY - 2013/// CY - Chicago PB - University of Chicago Press KW - Agglomeration KW - Wages KW - Human Capital Externalities N2 - 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 UR - https://doi.org/10.1086/668615 ER -