Regional Wage Differences in the Netherlands: Micro-Evidence on Agglomeration Externalities

Based on micro-data on individual workers for the period 2000-2005, we show that wage differentials in the Netherlands are small but present. A large part of these differentials can be attributed to individual characteristics of workers. Remaining effects are partially explained by variations in employment density, with an elasticity of about 3.8 percent and by Marshall-Arrow-Romer externalities, where doubling the share of a (2-digit NACE) industry results in a 2.4 percent higher productivity. We find evidence for a negative effect of competition (associated with Porter externalities) and diversity (associated with Jacobs externalities).

MoreLess

Year of publication:	2011
Authors:	Groot, Stefan P.T. ; de Groot, Henri L.F. ; Smit, Martijn
Publisher:	Amsterdam and Rotterdam : Tinbergen Institute
Subject:	Regionale Lohnstruktur \| Regionaler Arbeitsmarkt \| Agglomerationseffekt \| Niederlande \| regional labour markets \| wage differentials \| agglomeration externalities

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Series:	Tinbergen Institute Discussion Paper ; 11-050/3
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	840682018 [GVK] hdl:10419/86965 [Handle] RePEc:dgr:uvatin:20110050 [RePEc]
Classification:	J24 - Human Capital; Skills; Occupational Choice; Labor Productivity ; O12 - Microeconomic Analyses of Economic Development ; R11 - Regional Economic Activity: Growth, Development, and Changes ; R23 - Regional Migration; Regional Labor Markets; Population
Source:	EconStor

Persistent link: https://www.econbiz.de/10010325950