nep-geo New Economics Papers
on Economic Geography
Issue of 2020‒07‒27
nine papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. Why are Low-Skilled Workers less Mobile ? The role of Mobility Costs and Spatial Frictions By Benoît SCHMUTZ; Modibo SIDIBÉ; Élie VIDAL-NAQUET
  2. Agglomeration Effects in a Developing Economy: Evidence from Turkey By Cem Özgüzel
  3. Food, Fuel and the Domesday Economy By Juan Moreno-Cruz; M. Scott Taylor
  4. Occupational Matching and Cities By Theodore Papageorgiou
  5. UK Regions in Global Value Chains By Pieter IJtsma; Bart Los
  7. An Analysis about reverse offshoring By Piatanesi, Benedetta; Arauzo Carod, Josep Maria
  8. Exploring evidence of spatial economic agglomeration in Ekurhuleni Metropolitan Municipality, Gauteng, South Africa By Koech Cheruiyot
  9. The Spanish spatial city size distribution By González-Val, Rafael

  1. By: Benoît SCHMUTZ (Ecole Polytechnique and CREST, France); Modibo SIDIBÉ (Duke University, USA); Élie VIDAL-NAQUET (Aix-Marseille School of Economics, France)
    Abstract: Workers’ propensity to migrate to another local labor market varies a lot by occupation. We use the model developed by Schmutz and Sidibé (2019) to quantify the impact of mobility costs and search frictions on this mobility gap. We estimate the model on a matched employer-employee panel dataset describing labor market transitions within and between the 30 largest French cities for two groups at both ends of the occupational spectrum and find that: (i)mobility costs are very comparable in the two groups, so they are three times higher for blue-collar workers relative to their respective expected income; (ii)Depending on employment status, spatial frictions are between 1.5 and 3.5 times higher for blue-collar workers; (iii)Moving subsidies have little (and possibly negative) impact on the mobility gap, contrary to policies targeting spatial frictions.
    Keywords: mobility costs, spatial frictions, migration, local labor markets, occupation.
    JEL: J61 J64 R12 R23
    Date: 2020–06–15
  2. By: Cem Özgüzel (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Productivity differences across Turkish provinces is one of the highest among the OECD countries. In this paper, I estimate agglomeration effects for Turkish provinces to shed light on the causes of productivity differences and provide evidence on the importance of such effects in a developing country context which literature needs. I use a novel administrative dataset recently made available at NUTS-3 level, for 81 provinces of Turkey for the period 2008-2013 and carry out a two-step estimation. Using a variety of panel data techniques and historical instruments to deal with estimation concerns, I estimate an elasticity of labor productivity with respect to the density of 0.057-0.06, which is higher than in developed countries and around the levels observed in developing countries. I find that domestic market potential matters even more than density and is the most significant determinant of the productivity differences across Turkish provinces. Finally, in stark contrast with the evidence coming from developed countries, I do not find any effects for positive sorting of workers across provinces. This finding suggests that urbanisation patterns may be operating differently in developing countries, indicating the need for further evidence from such countries.
    Keywords: local labor markets,spatial wage disparities,developing country,Turkey
    Date: 2020–06
  3. By: Juan Moreno-Cruz; M. Scott Taylor
    Abstract: This paper develops a theory where access to food and fuel energy is critical to the location, number, and size of human settlements. By combining our theory with a simple Malthusian mechanism, we generate predictions for the distribution of economic activity and population across geographic space. We evaluate the model using data drawn from the very first census undertaken in the English language - the Domesday census - commissioned by William the Conqueror in 1086 A.D. Using G.I.S. data and techniques we find strong evidence that Malthusian forces determined the population size and the number of settlements in Domesday England.
    JEL: Q4 R12
    Date: 2020–06
  4. By: Theodore Papageorgiou (Boston College)
    Abstract: In this paper, I document that workers in larger cities have significantly more occupational options than workers in smaller ones. They are able to form better occupational matches and earn higher wages. I also note differences in the occupational reallocation patterns across cities. I develop a dynamic model of occupational choice that microfounds agglomeration economies and captures the empirical patterns. The calibration of the model suggests that better occupational match quality accounts for approximately 35% of the observed wage premium and a third of the greater inequality in larger cities.
    Keywords: occupations, agglomeration economies, urban wage premium, multi-armed bandits, geographical mobility, matching theory, wage inequality, job vacancy postings
    JEL: J24 J31 R23
    Date: 2020–06
  5. By: Pieter IJtsma; Bart Los
    Abstract: The nature of international trade has changed in the first decade of the 21st century. Many production processes have become organized in internationally dispersed supplier networks, so-called global value chains (GVCs). This tendency has implications for the competitiveness of countries and regions. This paper uses the regionalized world input output tables from the EUREGIO-database, for 2000 and 2010. These give quantitative descriptions of the world production structure, and the linkages between regions and countries regarding the sourcing of raw materials, parts, components and (business) services. Linking regional data on employment by industry to these tables allows us to quantify differences in the extent to which UK regions were contributing to GVCs. It also presents indications of changes in regional competitiveness and numerical evidence on regional Brexit risks for regional employment.
    Keywords: technological progress, telecommunications, deflators
    JEL: R11 R15 F62
    Date: 2020–06
  6. By: Teresa Farinha; ; Raphaël
    Abstract: Workers that become automated may transfer productivity gains to their co-workers or make it easier to automate their jobs too. In this paper, I empirically investigate how automatable jobs have diffused impacts to neighbouring jobs in North American cities between 2007 and 2016. Results indicate that jobs that share similarities with neighbouring high-risk jobs grew less, even when controlling for their own technical risk of automation. Conversely, jobs that share complementarities with neighbouring high-risk jobs grew faster, possibly indicating productivity gains from working with recently automated jobs. In addition to the analysis in this paper, I provide an adjusted index of job automation risk that accounts for local diffusion of impacts (negative and positive) in US cities.
    Keywords: automation, diffusion, jobs, cities, similarity, complementarity
    JEL: J21 O20 O33 R10
    Date: 2020–07
  7. By: Piatanesi, Benedetta; Arauzo Carod, Josep Maria
    Abstract: Economies that traditionally benefited from offshoring are losing some of their strategical advantages, with a consequent increase in backshoring (i.e., reverse offshoring) by developed economies. This paper describes this phenomenon and tries to shed light, from an Italian perspective, on the current challenges, trends and debates of backshoring, and on its main determinants. A new phenomenon known as nearshoring is also analysed—this consists of relocating some previously offshored manufacturing activities so that they are now close to previous core locations, but not so close as to suffer from disagglomeration effects. Key words: offshoring, backshoring, and nearshoring. JEL Classification: R12, R30
    Keywords: Economia regional, Localització industrial, 332 - Economia regional i territorial. Economia del sòl i de la vivenda,
    Date: 2019
  8. By: Koech Cheruiyot
    Abstract: Since Marshall's (1890) work on industrial districts in 19^{th} century England, agglomeration economies are credited for providing the needed catalytic role to economic growth and development. It does this by allowing critical masses, where knowledge spillovers among firms; labour market pooling; and sharing of industry-specific non-traded inputs, prosper. This research employs advanced spatial statistical approaches to analyse the spatial locations and economic sectors data of about 14,000 firms in Ekurhuleni Metropolitan Municipality, a major sub-regional economy in Gauteng economic metropolis and in South Africa. It attempts to answer the following questions; Is there evidence of spatial sectoral clusters, and if present, which kind of spatial economic clusters are they? What is the footprint of these spatial business clusters? The results of four selected industrial clusters show evidence of varying global and localised agglomeration. Localised agglomeration was established to be statistically significant as well. This research complements existing research in suggesting policies that ensure economic growth and development of the regional economy benefits from agglomeration economies.
    Keywords: Spatial agglomeration, exploratory spatial data analysis (ESDA), Ekurhuleni metro, South Africa
    JEL: R12 O4 R3 O18
    Date: 2020–01
  9. By: González-Val, Rafael
    Abstract: This paper analyses the Spanish city size distribution from a new perspective, focusing on the role played by distance. Using un-truncated data from all cities in 1900 and 2011, we study the spatial distribution of cities and how the city size distribution varies with distance. First, K-densities are estimated to identify different spatial patterns depending on city size, with significant patterns of dispersion found for medium-sized and large cities. Second, using a distance-based approach that considers all possible combinations of cities within a 200-km radius, we analyse the influence of distance on the city size distribution parameters, considering both the Pareto and lognormal distributions. The results validate the Pareto distribution in most of the cases regardless of city size, and the lognormal distribution at short distances.
    Keywords: city size distribution; distance-based approach; Pareto distribution; Zipf’s law; lognormal distribution
    JEL: C12 C14 O18 R11 R12
    Date: 2020–06–16

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