Testing the new economic geography's wage equation: a case study of Japan using a spatial panel model
Accepted version
Peer-reviewed
Repository URI
Repository DOI
Change log
Authors
Wang, C-Y
Haining, RP
Abstract
This paper estimates the parameters of the wage equation of the new economic geography (NEG) using a newly developed spatial panel model. The results show that wage rate variation across different prefectures in Japan can be explained by market potential, which is a key variable in NEG theory, whilst controlling for variation in labour efficiency. Spatial heterogeneity is particularly important in the context of Japan in part because of its complex physical geography and the spatial distribution of its principal urban centres. The paper considers the challenges associated with representing the spatial relationships between prefectures describing and implementing different approaches to measuring transport costs.
Description
Keywords
33 Built Environment and Design, 38 Economics, 3801 Applied Economics, 3304 Urban and Regional Planning
Journal Title
Annals of Regional Science
Conference Name
Journal ISSN
0570-1864
1432-0592
1432-0592
Volume Title
58
Publisher
Springer Verlag