Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/120598
Authors: 
Stokke, Hildegunn
Rattsø, Jørn
Carlsen, Fredrik
Year of Publication: 
2012
Series/Report no.: 
52nd Congress of the European Regional Science Association: "Regions in Motion - Breaking the Path", 21-25 August 2012, Bratislava, Slovakia
Abstract: 
Income levels are higher in cities. The evidence for the income gap between urban and rural areas is overwhelming, but the agglomeration effect is hard to identify. Recent advances make use of individual level data to separate out sorting and instrumentation to handle the endogeneity of population density. We offer an analysis based on the whole working population in Norway with complete description of their education level. The data allow for estimation of the agglomeration effect for different education groups and the results show that agglomeration economies are increasing with education level. The elasticity of income with respect to population size and density is significantly lower for individuals with lower education. The result is robust to alternative instruments of urbanization and inclusion of amenity effects.
Subjects: 
Agglomeration economies
urban wage premium
sorting
education groups
JEL: 
J24
J31
J61
R12
R23
Document Type: 
Conference Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.