We empirically test the positive relationship between market access and wages stated by New Economic Geography. Contrary to most estimations in other countries, we find evidence of significant spatial heterogeneity of this elasticity across Chilean communities.

This article examines the effect of market access and human capital on regional wage disparities in Ecuador using the wage equation of the core-periphery model of the New Economic Geography and a multi-level model. Our results, based on cross-sectional data, suggest that market access has a...