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Technology diffusion and the spatial distribution of wages in the US
Ciccone, Antonio
Universitat Pompeu Fabra. Departament d'Economia i Empresa
What explains the spatial distribution of wages across US counties? I find that two of the most important factors are spatial technology diffusion and externalities due to the aggregate scale of production. One empirical finding supporting the importance of spatial technology diffusion is that average wages in a county decrease with the average level of schooling in neighboring counties when employment in the county and average wages in neighboring counties are held constant. All empirical results are obtained using anovel instrument for (endogenous) employment at the county-leveland take into account other factors (e.g. productivity-differencesacross states, climate) that may determine wages.
2005-09-15
Macroeconomics and International Economics
us spatial wage distribution
spatial technology diffusion
dynamic spatial externalities
spatial fixed effects
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