SKILL, AGGLOMERATION, AND INEQUALITY IN THE SPATIAL ECONOMY

• 成果类型: Article
• 署名作者: Farrokhi, Farid
• 署名单位: Purdue University System; Purdue University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12514
• 发表日期: 2021
• 页码: 671-721
• 关键词: INTERNATIONAL-TRADE; cities; determinants; equilibrium; allocation; location; workers

摘要

This paper develops a spatial equilibrium model with skill heterogeneity and agglomeration forces that stem from local idea exchange. I structurally estimate the model using American census data to study policy effects on real wage inequality between and within college and noncollege workers. Using the estimated model, I find: (1) Skill composition and local spillovers, respectively, account for 30% and 70% of the city-level relationship between productivity and employment. (2) Recent skill-biased technological changes largely increased the welfare inequality between groups and within college workers. (3) Small transfers from larger to smaller cities may reduce inequality without changing aggregate welfare.