Regional Wage Disparities in Europe: What role for Market Access?

This paper uses a New Economic Geography model to test for wagedisparities in the European Union. We derive and estimate an econometric specificationrelating wages to a distance weighted sum of regional GDP’s. The empirical estimationsof the model were carried out for a sample of 160 NUTS2 regions i...

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Main Authors: Jesús López-Rodríguez, Andrés Faíña
Format: Article
Language:English
Published: AECR 2007-11-01
Series:Investigaciones Regionales - Journal of Regional Research
Subjects:
Online Access:http://www.aecr.org/images/ImatgesArticles/2008/01%20Lopez-Rod.pdf
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author Jesús López-Rodríguez
Andrés Faíña
author_facet Jesús López-Rodríguez
Andrés Faíña
author_sort Jesús López-Rodríguez
collection DOAJ
description This paper uses a New Economic Geography model to test for wagedisparities in the European Union. We derive and estimate an econometric specificationrelating wages to a distance weighted sum of regional GDP’s. The empirical estimationsof the model were carried out for a sample of 160 NUTS2 regions in theEU15 for the year 2000 showing that geography of access to markets is statisticallysignificant and quantitatively important in explaining cross-region variation in Europeanwages. We also show that incentives for human capital accumulation and innovationactivities arising from market access size are also affecting the shaping of regionalwages in the European Union.
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spelling doaj.art-6b651e84e7db4111883267736706a4252022-12-22T00:52:42ZengAECRInvestigaciones Regionales - Journal of Regional Research1695-72532007-11-0111523Regional Wage Disparities in Europe: What role for Market Access?Jesús López-RodríguezAndrés FaíñaThis paper uses a New Economic Geography model to test for wagedisparities in the European Union. We derive and estimate an econometric specificationrelating wages to a distance weighted sum of regional GDP’s. The empirical estimationsof the model were carried out for a sample of 160 NUTS2 regions in theEU15 for the year 2000 showing that geography of access to markets is statisticallysignificant and quantitatively important in explaining cross-region variation in Europeanwages. We also show that incentives for human capital accumulation and innovationactivities arising from market access size are also affecting the shaping of regionalwages in the European Union.http://www.aecr.org/images/ImatgesArticles/2008/01%20Lopez-Rod.pdfEconomic DevelopmentEconomic GeographySpatial structureEuropean Union
spellingShingle Jesús López-Rodríguez
Andrés Faíña
Regional Wage Disparities in Europe: What role for Market Access?
Investigaciones Regionales - Journal of Regional Research
Economic Development
Economic Geography
Spatial structure
European Union
title Regional Wage Disparities in Europe: What role for Market Access?
title_full Regional Wage Disparities in Europe: What role for Market Access?
title_fullStr Regional Wage Disparities in Europe: What role for Market Access?
title_full_unstemmed Regional Wage Disparities in Europe: What role for Market Access?
title_short Regional Wage Disparities in Europe: What role for Market Access?
title_sort regional wage disparities in europe what role for market access
topic Economic Development
Economic Geography
Spatial structure
European Union
url http://www.aecr.org/images/ImatgesArticles/2008/01%20Lopez-Rod.pdf
work_keys_str_mv AT jesuslopezrodriguez regionalwagedisparitiesineuropewhatroleformarketaccess
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