Trade, location, and wages in the United States

T. Knaap

Research output: Working paperAcademic


This paper estimates a spatial wage structure for the United States.I employ the market-access and supplier-access method of Reddingand Venables (2004), where access is determined using interstate tradedata. Economic geography models predict that state-level wages arecorrelated to this measure, owing to higher levels of demand and betteravailability of intermediate goods in easily accessible regions. Aftercorrecting for omitted-variable bias with exogenous ‘first nature’ regressorsand using the appropriate instruments, I find that the explanatorypower of access-variables is weak in this dataset.
Original languageEnglish
Place of PublicationUtrecht
PublisherUU USE Tjalling C. Koopmans Research Institute
Number of pages26
Publication statusPublished - 2005

Publication series

Name Discussion Paper Series / Tjalling C. Koopmans Research Institute
ISSN (Electronic)2666-8238


  • Spatial wage structure
  • United States
  • Economic Geography


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