Agglomeration Economies and the Urban Wage Premium in Australia

Meekes, Jordy

doi:10.2139/ssrn.3930370

Cited by 1 publication

(2 citation statements)

References 33 publications

(43 reference statements)

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“…This line of research includes the works of Glaeser and Mare (2001), Combes et al (2008) and De La Roca and Puga (2017), among others. Meekes (2022) studies the urban wage premium in Australia and finds that wages increase by 1.6 per cent to 2.7 per cent with a doubling in population density. However, Vij et al (2021) argue that urban wage premia are insufficient to mitigate congestion costs which may continue to increase over time under current policy settings in Australia.…”

Section: (I) Related Literaturementioning

confidence: 99%

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Uncovering Urban Advantages: Evidence from Australian Firm‐Level Data *

Bellofatto,

Domínguez,

Dwyer

2023

Economic Record

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This paper quantifies the productivity advantages of urban firms in Australia. Following Combes et al. (Econometrica 2012, 80, 2543), we decompose the source of urban advantages into agglomeration and selection effects using the most exhaustive data source on Australian businesses: the Business Longitudinal Analysis Data Environment (BLADE). We find that urban advantages increase the productivity of the average firm by nearly 6 per cent, and that most of such advantages are attributed to agglomeration effects rather than selection. Urban advantages differ substantially across sectors and by firm age. In particular, they are larger in services than in manufacturing and relatively benefit mature firms. We also perform a state‐level analysis, which largely confirms our main findings at the country level.

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Section: (I) Related Literaturementioning

confidence: 99%

“…(2008) and De La Roca and Puga (2017), among others. Meekes (2022) studies the urban wage premium in Australia and finds that wages increase by 1.6 per cent to 2.7 per cent with a doubling in population density. However, Vij et al .…”

Section: Introductionmentioning

confidence: 99%