HUI Working Papers, HUI Research
How Does Employment Density Influence Individuals' Wages? A Micro Data Approach.
() and Gunnar Isacsson
Abstract: We estimate the effect of employment density on wages in
Sweden in a large geocoded data set on individuals and workplaces.
Employment density is measured in four circular zones around each
individual's place of living. The data contains a rich set of control
variables that we use in an instrumental variables framework. Results show
a relatively strong but rather local positive effect of employment density
on wages. Beyond 5 kilometers the effect becomes negative. This might
indicate that the effect of agglomeration economies falls faster with
distance than the effects of congestion.
Keywords: agglomeration economies; accessibility; IV; Sweden; (follow links to similar papers)
JEL-Codes: J24; R10; R23; R40; (follow links to similar papers)
34 pages, October 3, 2013
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