This paper empirically analyzes the agglomeration-related productivity premium at the enterprise level of the manufacturing industry in Russia. A settlement is counted as part of an urban agglomeration in two cases: that of a large, central city and that of a town located within 50 kilometers of...

The difficulties of agglomeration effects estimation are caused by the problem of unobserved features of heterogeneous cities, industries, enterprises and even employees, related to both the dependent variable (enterprise-level labor productivity) and the specific characteristics of...