Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/85617
Authors: 
Gautier, Pieter A.
Teulings, Coen N.
Year of Publication: 
2000
Series/Report no.: 
Tinbergen Institute Discussion Paper 00-036/3
Abstract: 
In this paper we derive a structural measure for labor market density based on the Ellison and Glasear (1997) Index for industry concentration. This labor market density measure serves as a proxy for the number of workers that can reach a certain work area within a reasonal amount of traveling time. We apply this measure to a standard wage equation and find that it takes account of almost half of the cross region wage variance (not explained by other observables). Moreover, it explains substantially more than the traditional density measure: people per square mile.
Subjects: 
labor market density
wage equation
JEL: 
J21
J30
J60
J23
Document Type: 
Working Paper

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