Worker and firm heterogeneity, agglomeration, and wages in Brazil
SILVA, Diana; AZZONI, Carlos. Worker and firm heterogeneity, agglomeration, and wages in Brazil. Papers in Regional Science, v. 101, n. 1, p. 107-133, 2022.
Resumo: This paper analyses the influence of agglomeration and spatial sorting on wages in Brazilian cities. The empirical strategy is based on a two-step estimation. The first step estimates a wage equation with the observed characteristics of workers and firms and location effects. The second step decomposes the location effects into employment density and fixed effects of firm and worker. We estimate an urban wage premium for a developing country with the simultaneous inclusion of worker and firm fixed effects, instrumental variables, and nighttime lights. We find agglomeration effects of 4.3–5.7%, which are larger than those obtained for developed countries.
Data e Hora:
Papers in Regional Science, v. 101, n. 1, p. 107-133, 2022.