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A platform for research: civil engineering, architecture and urbanism
The neighborhood or the region? Reassessing the density–wage relationship using geocoded data
Abstract I analyze the effects of sub-city-level density of economic activity on wages. Using a geocoded dataset on employment and wages in the city areas of Sweden, the analysis is based on squares representing “neighborhoods” ($$0.0625\,\hbox {km}^{2})$$, “districts” ($$1\,\hbox {km}^{2})$$, and “agglomerations” ($$10\,\hbox {km}^{2})$$. The wage-density elasticity depends on spatial resolution, with the elasticity being highest in neighborhood squares, where a doubling of density is associated with wage increases of 1.2 %, or roughly the size of the elasticity for region density. Moving from a mean-density neighborhood to the densest neighborhood would on average increase wages by 9 %. The results are consistent with (i) the existence of a localized density spillover effect and (ii) quite sharp attenuation of human capital spillovers. An implication of the findings is that if the data source is not sufficiently disaggregated, analyses of the density–wage link risk understating the benefits of working in dense parts of regions, such as the central business districts.
The neighborhood or the region? Reassessing the density–wage relationship using geocoded data
Abstract I analyze the effects of sub-city-level density of economic activity on wages. Using a geocoded dataset on employment and wages in the city areas of Sweden, the analysis is based on squares representing “neighborhoods” ($$0.0625\,\hbox {km}^{2})$$, “districts” ($$1\,\hbox {km}^{2})$$, and “agglomerations” ($$10\,\hbox {km}^{2})$$. The wage-density elasticity depends on spatial resolution, with the elasticity being highest in neighborhood squares, where a doubling of density is associated with wage increases of 1.2 %, or roughly the size of the elasticity for region density. Moving from a mean-density neighborhood to the densest neighborhood would on average increase wages by 9 %. The results are consistent with (i) the existence of a localized density spillover effect and (ii) quite sharp attenuation of human capital spillovers. An implication of the findings is that if the data source is not sufficiently disaggregated, analyses of the density–wage link risk understating the benefits of working in dense parts of regions, such as the central business districts.
The neighborhood or the region? Reassessing the density–wage relationship using geocoded data
Larsson, Johan P. (author)
2014
Article (Journal)
Electronic Resource
English
BKL:
83.64$jRegionalwirtschaft
/
74.12
Stadtgeographie, Siedlungsgeographie
/
38.00$jGeowissenschaften: Allgemeines
/
38.00
Geowissenschaften: Allgemeines
/
83.64
Regionalwirtschaft
/
74.12$jStadtgeographie$jSiedlungsgeographie
RVK:
ELIB39
/
ELIB18
/
ELIB45
Local classification FBW:
oek 4450
The neighborhood or the region? Reassessing the density–wage relationship using geocoded data
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