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The Annals of Regional Science

Erschienen in:

19.07.2017 | Original Paper

Urban wage inequality and economic agglomeration

verfasst von: Yiming Zhou

Erschienen in: The Annals of Regional Science | Ausgabe 2/2017

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Abstract

This paper explores the impact of interplay between transport costs and commuting costs on urban wage inequality and economic distribution within a new economic geography model. As in former studies, workers tend at the same time to agglomerate in order to limit transport costs of manufactured good and to disperse in order to alleviate the burden of urban costs. In this paper, we pay special attention to wages and spot light on how the urban wage inequality is determined by interplay between urban costs and transport costs. We also solve analytically the break points and the sustain points and disclose their relationships with transport costs and commuting costs in a general equilibrium model.

Vorheriger Artikel Is spatial distribution of China’s population excessively unequal? A cross-country comparison

Nächster Artikel The growth of US science and technology parks: does proximity to a university matter?

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Tabuchi (1998) assumes absentee landlords, whereas Helpman (1998) assumes global land ownership.

This production technology is used by Zhou et al. (2016) to study locations of multi-industries; in particular, Zhou et al. (2016) put forward an example: In the design and processing industry of platinum, gold, and silver jewelery, workers with highly trained skills and know-how are employed as fixed input while capital takes the form of raw materials and is used as marginal input.

To our best knowledge, little work has embodied both capital and labor mobility into a unique model. Allio (2016b) incorporated both, however, employed capital as fixed input and mobile labor as marginal input. He derived the spatial equilibrium when one factor distribution is given. In contrast, here, capital is used as marginal input, and considered to migrate immediately after the entrepreneur’s location decision. Therefore, we focus on the migration of mobile workers and treat capital movement as simple as possible.

When \(\phi =0\), we have \(w_1/w_2=\frac{2-\theta (1-\lambda )}{2-\theta \lambda }\) which is an increasing function of \(\theta \).

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Titel: Urban wage inequality and economic agglomeration
verfasst von: Yiming Zhou
Publikationsdatum: 19.07.2017
Verlag: Springer Berlin Heidelberg
Erschienen in: The Annals of Regional Science / Ausgabe 2/2017
Print ISSN: 0570-1864
Elektronische ISSN: 1432-0592
DOI: https://doi.org/10.1007/s00168-017-0840-7

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