nep-geo New Economics Papers
on Economic Geography
Issue of 2020‒08‒31
nine papers chosen by
Andreas Koch
Institut für Angewandte Wirtschaftsforschung

  1. The perverse effects of hiring credits as a place-based policy: Evidence from Southern Italy By d'Agostino, Giorgio; Patriarca, Fabrizio; Pieroni, Luca; Scarlato, Margherita
  2. The Contribution of the Spatial Dimension to Inequality: A Counterfactual Analysis for OECD Countries By Luis Ayala; Javier Martín-Román; Juan Vicente
  3. The Impact of Market Size on Firm Selection By KONDO Keisuke; OKUBO Toshihiro
  4. China's Impact on Regional Employment: Propagation through Supply Chains and Co-agglomeration Pattern By SAITO Yukiko; KAINUMA Shuhei; Michal FABINGER
  5. The missing ingredient: distance internal migration and its long-term economic impact in the United States By von Berlepsch, Viola; Rodríguez-Pose, Andrés
  6. Reversal of economic fortunes: institutions and the changing ascendancy of Barcelona and Madrid as economic hubs By Rodríguez-Pose, Andrés; Hardy, Daniel
  7. An information-theoretic approach to the analysis of location and co-location patterns By Alje van Dam; Andres Gomez-Lievano; Frank Neffke; Koen Frenken
  8. Employment Sub-Centers in a Megacity from a Developing Country: The Case of the Municipality of São Paulo, Brazil By Barros Antunes Campos, Rodger; Squarize Chagas, André Luis
  9. Dispersão Concentrada do Emprego: Uma Incursão Sobre os Modelos Teóricos e Abordagens Empíricas By Barros Antunes Campos, Rodger; Azzoni, Carlos Roberto

  1. By: d'Agostino, Giorgio; Patriarca, Fabrizio; Pieroni, Luca; Scarlato, Margherita
    Abstract: This paper evaluates the wage effects of a tax credit policy on new hirings in Southern Italy. We use high-quality administrative data and propose a latent class inverse probability weighting method as a strategy to account for workers' unobserved heterogeneity. We find an unexpected negative effect of the tax cut on the wages of treated workers, which is more marked for women. Our results also provide new insights on the job-segregation dimension of the gender gap. We provide a theoretical model with worker and firm fixed effects to analyse the impact of employer tax cuts as a place-based policy in lagging regions.
    Keywords: Regional disparities, place-based policies, hiring credits, wage differentials, gender segregation.
    JEL: J16 J31 J38 J42 R58
    Date: 2020–08
  2. By: Luis Ayala; Javier Martín-Román; Juan Vicente
    Abstract: This paper provides recent evidence on the contribution of the spatial dimension to inequality and more specifically accounts for the impact of the changes in the territorial distribution of the population on the recent dynamics of income inequality. We use LIS harmonized microdata for a selected sample of OECD countries. We provide new evidence over a more varied group of countries and a more recent period than in previous studies. We perform different types of decompositions to isolate the contribution of the changes in the territorial distribution of the population. The results show a generalized increase in income inequality, with an interesting “reducing effect” on this trend due to inter-territorial population movements.
    JEL: D31 D63 P52
    Date: 2020–02
  3. By: KONDO Keisuke; OKUBO Toshihiro
    Abstract: This study analyzes how local market size affects the probabilities of firm exit by focusing on single-establishment firms in the service sector. The novelty of this study is that it identifies geographic ranges of local markets using the matched data of geocoded firm location and micro-geographic data with detailed firm exit information of all Japanese firms. The results reveal that the probability of firm exit increases as local market size increases within a narrow range (3 km radius) in the service sector. We also find that small firms tend to leave the market. Our results suggest that firm selection is stronger in larger markets, where larger firms are more likely to survive.
    Date: 2020–05
  4. By: SAITO Yukiko; KAINUMA Shuhei; Michal FABINGER
    Abstract: How does import from China affect local labor markets in Japan? We examine this question using commuting zones as regional units, incorporating shock propagation through supply chains, as well as co-agglomeration patterns. Applying the method proposed by Autor, Dorn and Hanson (2013) and Acemoglu, et al. (2016), we investigate the impact on regional manufacturing employment. Employing the input-output table allows us to analyse how the shocks propagate to upstream/downstream industries and how regional impact is related to co-agglomeration patterns. We find that the negative direct effect on local employment is underestimated in previous studies that do not consider regional propagation of the shock through supply chains, especially the positive shock to downstream industries. Downstream industries significantly benefit from imports from China due to low input prices, which increases local employment. We find no significant impact on upstream industries. Our results imply that the direct effect on local labor markets is weakened by effects on downstream industries within the same region.
    Date: 2020–05
  5. By: von Berlepsch, Viola; Rodríguez-Pose, Andrés
    Abstract: This paper examines if internal migrants at the turn of the twentieth century have influenced the long-term economic development of the counties where they settled over 100 years ago. Using Census microdata from 1880 and 1910, the distance travelled by American-born migrants between birthplace and county of residence is examined to assess its relevance for the economic development of US counties today. The settlement patterns of domestic migrants across the 48 continental states are then linked to current county-level development. Factors influencing both migration at the time and the level of development of the county today are controlled for. The results of the analysis underline the economic importance of internal migration. Counties that attracted American-born migrants more than 100 years ago are significantly richer today. Moreover, distance is crucial for the impact of internal migration on long-term economic development; the larger the distance travelled by domestic migrants, the greater the long-term economic impact on the receiving territories.
    Keywords: internal migration; distance; long-term; economic development; counties; US
    JEL: J61 N11 O15 R23
    Date: 2019–01–22
  6. By: Rodríguez-Pose, Andrés; Hardy, Daniel
    Abstract: This paper looks at the divergent economic trajectories of Barcelona and Madrid since Spain's transition to democracy. It highlights how Barcelona, the city that was better positioned four decades ago to emerge as the main Spanish economic hub, has lost out to Madrid. We argue that the contrasting trajectories of the two cities have less to do with the pull of Madrid as the capital of Spain, with the development of new infrastructure in the country, or with agglomeration economies, and more with institutional factors. A growing societal divide in Barcelona along economic, social, and identity lines has led to a greater breakdown of trust and to the development of strong groups with limited capacity to bridge with one another than in Madrid. This has entailed the emergence of negative externalities that have limited the economic potential for growth in Barcelona and facilitated the rise of Madrid as the main economic hub within Spain.
    Keywords: Wiley
    JEL: N0
    Date: 2020
  7. By: Alje van Dam; Andres Gomez-Lievano; Frank Neffke; Koen Frenken
    Abstract: We propose a statistical framework to quantify location and co-location associations of economic activities using information-theoretic measures. We relate the resulting measures to existing measures of revealed comparative advantage, localization and specialization and show that they can all be seen as part of the same framework. Using a Bayesian approach, we provide measures of uncertainty of the estimated quantities. Furthermore, the information-theoretic approach can be readily extended to move beyond pairwise co-locations and instead capture multivariate associations. To illustrate the framework, we apply our measures to the co-location of occupations in US cities, showing the associations between different groups of occupations.
    Keywords: pointwise mutual information, Kullback-Leiblerdivergence, revealed comparative advantage(RCA), specialization, localization, co-agglomeration
    Date: 2020–08
  8. By: Barros Antunes Campos, Rodger; Squarize Chagas, André Luis (Departamento de Economia, Universidade de São Paulo)
    Abstract: Theoretical models concerned with multiple centers were brought into the debate on sprawling urban employment. However, empirical methods that identify central places are not a specific aspect in the specialized literature. Then, the purpose of this paper is to identify and characterize the urban employment subcenters (Small Business Districts, SBD) in the Municipality of São Paulo by using a new methodology approach. We propose a two-step methodology: 1) Exploratory Spatial Data Analysis and 2) Spatial Hedonic Prices Model. As a result, we found seven regions that can be considered SBD. These regions are able to impact housing prices as predicted by polycentric theoretical models.
    Keywords: urban economics; center business district (CBD); subcenter business district (SBD); spatial econometrics
    JEL: C21 R23
    Date: 2019
  9. By: Barros Antunes Campos, Rodger; Azzoni, Carlos Roberto (Departamento de Economia, Universidade de São Paulo)
    Abstract: Este artigo busca discutir e apontar para a relevância do espraiamento do emprego dentro das cidades. Partindo dos modelos teóricos desenvolvidos pela Teoria Clássica da Localização e pelos modelos monocêntricos desenvolvidos pela Nova Economia Urbana, a concentração do emprego ótima se dá em um único espaço dentro da cidade, isto é, em um contexto de aglomeração. Todavia, as cidades modernas são caracterizadas por seu dinamismo e capacidade de espraiar o emprego sobre o espaço de forma concentrada. Neste contexto, um grupo de modelos teóricos foram desenvolvidos em um cenário com mais de um centro de negócios, sejam esses estabelecidos endógena ou exogenamente ao modelo. A partir dessa incursão teórica, nota-se que a dispersão concentrada do emprego tem implicação de política pública relevante. O surgimento de novos centros afetam os vetores de preços de equilíbrio, tornando o preços da terra mais elevados, salários devendo ser compensados por tal elevação ou elevação da demanda por um sistema de transporte capaz de capturar mão de obra mais barata em lugares mais distantes e, consequentemente, reduzindo o spatial mismatch entre oferta e demanda por mão de obra. Quanto à abordagem empírica, conclui-se que inexiste nessa literatura um ponto pacífico sobre a melhor técnica a ser aplicada, mas é possível notar que as cidades não são monocêntricas.
    Keywords: spatial structure; employment spread; centers and subcenters of business
    JEL: R10
    Date: 2019

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