New economic geography and US metropolitan wage inequality

Fallah, Belal; Partridge, Mark D.; Olfert, M. Rose

doi:10.1093/jeg/lbq016

Cited by 40 publications

(25 citation statements)

References 36 publications

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“…(EMSI) with information on county employment and earnings disaggregated at 4--digit NAICS level. EMSI data have been successfully used in various studies in recent years (Betz et al, 2015;Dorfman et al, 2011;Fallah et al, 2011;Fallah et al, 2014;Nolan et al, 2011). This allows us to measure oil--and gas--extraction employment, as well as other sectors of interest, more precisely (especially in calculating our energy and industry mix terms).…”

Section: Estimation Approach Variables and Data Sourcesmentioning

confidence: 99%

Economics of modern energy boomtowns: Do oil and gas shocks differ from shocks in the rest of the economy?

Tsvetkova

Partridge

2016

Energy Economics

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The U.S. shale boom has intensified interest in how the expanding oil and gas sector affects local economic performance. Research has produced mixed results and has not compared how energy shocks differ from equal--sized shocks elsewhere in the economy. What emerges is that the estimated impacts of energy development vary by region, empirical methodology, as well as the time horizon that is considered. This paper captures these dimensions to present a more complete picture of energy boomtowns. Utilizing U.S. county data, we estimate the effects of changes in oil and gas extraction employment on total employment growth as well as growth by sector. We compare this to the effects of equal--sized shocks in the rest of the economy to assess whether energy booms are inherently different. The analysis is performed separately for nonmetropolitan and metropolitan counties using instrumental variables. We difference over 1--, 3--, 6--, and 10--year time periods to account for county fixed effects and to assess responses across different time horizons. The results show that in nonmetro counties, energy sector multiplier effects on total county employment first increase up to 6--year horizons and then decline for 10--year horizons. In metro counties, 1--year differences analysis suggests crowding out though the multipliers are insignificant in longer horizons. We also observe positive spillovers to the nontraded goods sector, while spillovers are small or negative for traded goods. Yet, equal--sized shocks in the rest of the economy produce more jobs on average than oil and gas shocks, suggesting that policymakers should seek more diversified development.

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Section: Estimation Approach Variables and Data Sourcesmentioning

confidence: 99%

Economics of modern energy boomtowns: Do oil and gas shocks differ from shocks in the rest of the economy?

Tsvetkova

Partridge

2016

Energy Economics

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“…One prerequisite of any analysis of the determinants of regional wages is sufficient controls for individual characteristics like skill or gender, which are among the main determinants of interindividual wage heterogeneity (Mincer, 1974;Willis, 1986;Combes et al, 2008). 1 Mion and Naticchioni (2005) and Combes et al (2008) use individual data to estimate the impact of market proximity on wages, emphasizing the importance of the spatial sorting of skills in explaining wage disparities. These analyses appeal to a fairly crude measure of market access, based on Harris (1954), 2 which is not directly derived from NEG theory and may, for this reason, overestimate the role of surrounding markets on local wages (Head & Mayer, 2006).…”

Section: Introductionmentioning

confidence: 99%

Market Access and Individual Wages: Evidence from China

Hering

Poncet

2010

Review of Economics and Statistics

131

116

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Abstract-We consider the effect of geography on wages using individual data from 56 Chinese cities. We present a simple new economic geography model that links wages to individual characteristics and market access. The latter is calculated as a transport cost weighted sum of surrounding locations' market capacity. After controlling for individual skills and local factor endowments, we find that a significant fraction of the interindividual differences in returns to labor can be explained by the geography of market access. We further find greater wage sensitivity to market access for highly skilled workers and for workers in private and, particularly, foreign-owned firms.

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“…EMSI has developed an algorithm to fill these holes, and their data are reported to be relatively accurate (Dorfman, Partridge, and Galloway, 2011;Fallah, Partridge, and Olfert. 2011). period.…”

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confidence: 99%

Location determinants of high-growth firms

Goetz

Partridge

et al. 2015

Entrepreneurship & Regional Development

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County-level location patterns of INC5000 companies provide one map of American entrepreneurship and innovativeness, and understanding the local factors associated with these firms' emergence is important for stimulating regional economic growth and innovation. We draw on the knowledge spillover theory of entrepreneurship to motivate our regression model, and augment this theory with additional regional features that have been found to be important in the firm-location literature. Zero-inflated negative binomial regressions indicate that these firms exist in counties with larger average establishment size, higher educational attainment, and more natural amenities. Income growth, a mix of higher-paying industries, and more banks per capita are associated with a smaller presence of these types of firms, all else equal. We conclude that the local conditions favoring high growth firms are likely to be different from those favoring new firms in general, and that these conditions differ significantly in urban and rural areas and by industrial sectors.

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New economic geography and US metropolitan wage inequality

Cited by 40 publications

References 36 publications

Economics of modern energy boomtowns: Do oil and gas shocks differ from shocks in the rest of the economy?

Economics of modern energy boomtowns: Do oil and gas shocks differ from shocks in the rest of the economy?

Market Access and Individual Wages: Evidence from China

Location determinants of high-growth firms

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