Agglomeration economies and labour productivity: evidence from longitudinal worker data for GB's travel-to-work areas

摘要: This paper analyzes the impact of agglomeration externalities on hourly earnings using longitudinal worker micro-level data from Annual Survey Hours and Earnings over period 2002- 2006. We find that effect wages is sensitive to estimator used. Controlling for nonzero correlation between workers’ unobservable skills other covariates halves size wage elasticity externalities. On contrary, accounting firms’ heterogeneity has only a weak contribution explanation differentials. Another interesting result correcting reverse causality productivity does not appear have substantial magnitude parameter estimates. Our best estimate labour market density (market potential) 0.8% (5.8%). means doubling market’s employment can raise by nearly 1%, while halving distances markets produces an increase 3%. The last piece evidence refers spatial attenuation 100,000 in number jobs within 5 kilometres raises approximately 1.19%; falls sharply thereafter.