Endogenous Local Labour Markets, Regional Aggregation and Agglomeration Economies

Jordy Meekes and Wolter Hassink ()
Additional contact information
Wolter Hassink: Utrecht University

No 12765, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper examines the role of regional aggregation in measuring agglomeration externalities. Using Dutch administrative data, we define local labour markets (LLMs) based on the worker's commuting outcomes, gender and educational attainment, and show that high-educated workers and male workers are characterised by a relatively large LLM. We find that the effect of employment density on workers' wages increases in the level of regional aggregation, explained by larger agglomeration externalities at a higher spatial scale. We quantify subgroup differentials and find that high-educated workers have agglomeration externalities twice as high as low-educated workers. We show that workers who lose their job in denser LLMs experience positive agglomeration externalities on job matching, with more modest losses in wages and again larger density effects at higher levels of regional aggregation.

Keywords: local labour markets; job loss; urban wage premium; commuting; agglomeration (search for similar items in EconPapers)
JEL-codes: J31 J6 R12 R23 (search for similar items in EconPapers)
Pages: 61 pages
Date: 2019-11
New Economics Papers: this item is included in nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: Regional Studies, 2023, 57 (1), 13 - 25

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Related works:
Journal Article: Endogenous local labour markets, regional aggregation and agglomeration economies (2023)
Working Paper: Endogenous local labour markets, regional aggregation and agglomeration economies (2019)
Working Paper: Endogenous local labour markets, regional aggregation and agglomeration economies (2018)
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