TY - CHAP
T1 - The estimation of urban premium wage using propensity score analysis
T2 - Some considerations from the spatial perspective
AU - Paredes, Dusan
AU - Lufin, Marcelo
AU - Aroca, Patricio
N1 - Publisher Copyright:
© Springer-Verlag Berlin Heidelberg 2012.
PY - 2012
Y1 - 2012
N2 - The urban economics literature supports that thick labor markets pay higher wage levels than thin labor markets. Glaeser and Mare (2001) estimate the elasticity wage-city size larger than one million inhabitants around of 36 % higher than smaller areas, while Glaeser and Messenger (2010) identify a elasticity of 45 % for the case of skilled workers. This positive relation also exists within industries, but with an uneven impact (Elvery 2010). In spite of the extensive empirical evidence, the most of the applications have been focused on North American, European and Asian contexts. In this chapter we extend the analysis toward the Latin American case, where the ONU-Wider has strongly recommended focusing on “increasing inequalities partly as a consequence of the uneven impact of trade openness and globalization” (Kanbur et al. 2005). We use the Chilean case and provide a first estimation of wage differentials between thick and thin labor markets. Although the extension toward new contexts could be considered a contribution as itself, the particular scenario of Latin American realities must be discussed.
AB - The urban economics literature supports that thick labor markets pay higher wage levels than thin labor markets. Glaeser and Mare (2001) estimate the elasticity wage-city size larger than one million inhabitants around of 36 % higher than smaller areas, while Glaeser and Messenger (2010) identify a elasticity of 45 % for the case of skilled workers. This positive relation also exists within industries, but with an uneven impact (Elvery 2010). In spite of the extensive empirical evidence, the most of the applications have been focused on North American, European and Asian contexts. In this chapter we extend the analysis toward the Latin American case, where the ONU-Wider has strongly recommended focusing on “increasing inequalities partly as a consequence of the uneven impact of trade openness and globalization” (Kanbur et al. 2005). We use the Chilean case and provide a first estimation of wage differentials between thick and thin labor markets. Although the extension toward new contexts could be considered a contribution as itself, the particular scenario of Latin American realities must be discussed.
UR - http://www.scopus.com/inward/record.url?scp=85020086950&partnerID=8YFLogxK
U2 - 10.1007/978-3-642-31994-5_11
DO - 10.1007/978-3-642-31994-5_11
M3 - Chapter
AN - SCOPUS:85020086950
T3 - Advances in Spatial Science
SP - 215
EP - 236
BT - Advances in Spatial Science
PB - Springer International Publishing
ER -