Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86965
Authors: 
Groot, Stefan P.T.
de Groot, Henri L.F.
Smit, Martijn
Year of Publication: 
2011
Series/Report no.: 
Tinbergen Institute Discussion Paper 11-050/3
Abstract: 
Based on micro-data on individual workers for the period 2000-2005, we show that wage differentials in the Netherlands are small but present. A large part of these differentials can be attributed to individual characteristics of workers. Remaining effects are partially explained by variations in employment density, with an elasticity of about 3.8 percent and by Marshall-Arrow-Romer externalities, where doubling the share of a (2-digit NACE) industry results in a 2.4 percent higher productivity. We find evidence for a negative effect of competition (associated with Porter externalities) and diversity (associated with Jacobs externalities).
Subjects: 
regional labour markets
wage differentials
agglomeration externalities
JEL: 
J24
O12
R11
R23
Document Type: 
Working Paper

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