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on Economic Geography |
| By: | Eliasson, Kent (Umeå School of Business, Economics and Statistics, Swedish Agency for Growth Policy Analysis); Westerlund, Olle (Department of Economics, Umeå University) |
| Abstract: | We use Swedish longitudinal population register data on university graduates and estimate the effect of migration on earnings. Migration between regional labour markets is used to identify static and dynamic agglomeration effects on earnings. Heterogeneity in effects is examined by individuals’ position in the ability distribution and by origin-destination size categories of regional labour markets. The results indicate that the effect of upward migration (from smaller to larger labour markets) on earnings is positive throughout. Downward migration (from larger to smaller labour markets) is generally associated with negative or no convincing signs of positive effects on earnings. The estimates indicate positive short-term urban wage premiums (UWP) for all origin-destination flows of upward migration, especially high UWP for in-migration to the Stockholm labour market region. The UWP of upward migration is positive also for movers in the lower end of the ability distribution, but it is substantially higher for high ability migrants. We also find evidence of a positive dynamic UWP of migration to Stockholm from the other regions, particularly for high ability migrants. |
| Keywords: | Urban wage premium; human capital; migration; agglomeration economies; ability |
| JEL: | J24 J61 R10 R12 R23 |
| Date: | 2019–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:0962&r=all |
| By: | Roberto Antonietti; Sandro Montresor |
| Abstract: | This paper investigates the role of Key Enabling Technologies (KETs) in the regional diversification of economic activities. We maintain that KETs drive different diversification trajectories, leading regions from the most conservative to the most radical pattern of diversification. Using an original dataset for Italian NUTS3 regions, we estimate a series of ordered logit models, in which a region’s propensity to move across industry diversification patterns depends on its KETs endowment. We find regions with more KETs better able to move towards more ‘unrelated’ diversification patterns, but only when KETs are combined with other technologies, and only in densely populated regions. |
| Keywords: | diversification patterns, Key Enabling Technologies, ordered logit |
| JEL: | R11 R58 O31 O33 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1928&r=all |
| By: | Gaétan de Rassenfosse (Chair of Innovation and IP Policy, EPFL, Lausanne, Switzerland); Jan Kozak; Florian Seliger (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | The dataset provides geographic coordinates for inventor and applicant locations in 18.8 million patent documents spanning over more than 30 years. The geocoded data are further allocated to the corresponding countries, regions and cities. When the address information was missing in the original patent document, we imputed it by using information from subsequent filings in the patent family. The resulting database can be used to study patenting activity at a fine-grained geographic level without creating bias towards the traditional, established patent offices. |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:19-458&r=all |
| By: | Martinez Ibañez, Oscar; Manjón Antolín, M.; Miranda Gualdrón, Karen Alejandra |
| Abstract: | We present a growth model with spatial interdependencies in the heterogeneous technological progress and the stock of knowledge that, under certain conditions, yields agrowth-initial equation that can be taken to the data. We then use data on EU-NUTS2 regions and a correlated random e ects specication to estimate the resulting spatial Durbin dynamic panel model with spatially weighted individual e ects. QML estimatessupport our model against simpler alternatives that impose a homogeneous technology. Also, our results indicate that rich regions tend to have higher (unobserved) productivityand are likely to stay rich because of the strong time and spatial dependence of the GDP per capita. Poor regions, on the other hand, tend to enjoy productivity spillovers but arelikely to stay poor unless they increase their saving rates. |
| Keywords: | Spatial Panel Data; Economic Growth; Durbin Model; Correlated Random Effects |
| JEL: | O47 C23 |
| Date: | 2019–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:cte:wsrepe:29023&r=all |
| By: | Moretti, Enrico (University of California, Berkeley); Wilson, Daniel (Federal Reserve Bank of San Francisco) |
| Abstract: | We study the effect of state-level estate taxes on the geographical location of the Forbes 400 richest Americans and its implications for tax policy. We use a change in federal tax law to identify the tax sensitivity of the ultra-wealthy's locational choices. Before 2001, some states had an estate tax and others didn't, but the tax liability for the ultra-wealthy was independent of their domicile state due to a federal credit. In 2001, the credit was phased out and the estate tax liability for the ultra-wealthy suddenly became highly dependent on domicile state. We find the number of Forbes 400 individuals in estate tax states fell by 35% after 2001 compared to non-estate tax states. We also find that billionaire's sensitivity to the estate tax increases significantly with age. Overall, billionaires' geographical location appears to be highly sensitive to state estate taxes. We then estimate the effect of billionaire deaths on state tax revenues. We find a sharp increase in tax revenues in the three years after a Forbes billionaire death, totaling $165 million for the average billionaire. In the last part of the paper, we study the implications of our findings for state tax policy. We estimate the revenue costs and benefits for each state of having an estate tax. The benefit is the one-time tax revenue gain when a wealthy resident dies, while the cost is the foregone income tax revenues over the remaining lifetime of those who relocate. Surprisingly, despite the high estimated tax mobility, we find that the benefit exceeds the cost for the vast majority of states. |
| Keywords: | Forbes 400, Geographical mobility |
| JEL: | J01 R10 H10 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12699&r=all |