Endogenous local labour markets, regional aggregation and agglomeration economies

Jordy Meekes*, Wolter Hassink

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

We examine the role of spatial unit size in measuring the urban wage premium. Using Dutch administrative data, we define local labour markets (LLMs) based on employees’ commuting outcomes, gender and educational attainment. We show that high-educated employees and male employees have a relatively large LLM. Using a continuum of regional aggregations, we find that urban wage premium estimates increase over the level of aggregation, also for different subgroups of employees. We show that the modifiable areal unit problem (MAUP) does not explain this pattern, consistent with stronger agglomeration externalities at higher regional aggregation levels.
Original languageEnglish
Pages (from-to)13-25
Number of pages13
JournalRegional Studies
Volume57
Issue number1
DOIs
Publication statusPublished - Jan 2023

Keywords

  • urban wage premium
  • modifiable areal unit problem (MAUP)
  • local labour markets
  • agglomeration
  • gender
  • education

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