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Defining the Spatial Scale in Modern Regional Analysis pp 215–236Cite as

The Estimation of Urban Premium Wage Using Propensity Score Analysis: Some Considerations from the Spatial Perspective

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Abstract

The urban economics literature supports that thick labor markets pay higher wage levels than thin labor markets. Glaeser and Mare (2001) estimate the elasticity wage-city size larger than one million inhabitants around of 36 % higher than smaller areas, while Glaeser and Messenger (2010) identify a elasticity of 45 % for the case of skilled workers. This positive relation also exists within industries, but with an uneven impact (Elvery 2010). In spite of the extensive empirical evidence, the most of the applications have been focused on North American, European and Asian contexts. In this chapter we extend the analysis toward the Latin American case, where the ONU-Wider has strongly recommended focusing on “increasing inequalities partly as a consequence of the uneven impact of trade openness and globalization” (Kanbur et al. 2005). We use the Chilean case and provide a first estimation of wage differentials between thick and thin labor markets. Although the extension toward new contexts could be considered a contribution as itself, the particular scenario of Latin American realities must be discussed.

Keywords

  • Labor Market
  • Wage Differential
  • Metropolitan Region
  • Administrative Division
  • Wage Premium

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Map 11.1
Map 11.2
Network 11.1
Network 11.2
Fig. 11.1
Fig. 11.2
Fig. 11.3
Fig. 11.4

Notes

  1. 1.

    Annual National Manufacturing Survey, Chile, 1997

  2. 2.

    The Chilean administrative division presents ifteen regions including a Metropolitan Region (MR).

  3. 3.

    This assumption has received several names in the literature: unconfoundness ( Rosenbaum and Rubin 1983), selection on observables (Barnow et al. 1980), conditional independence (Lechner 1999), and exogeneity (Imbens 2004).

  4. 4.

    The Stata® code is available upon autor request.

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Authors and Affiliations

  1. Facultad de Economia, Departamento de Economia, Universidad Católica del Norte, Avenida Angamos 0610, Antofagasta, Chile

    Dusan Paredes, Marcelo Lufin & Patricio Aroca

Authors
  1. Dusan Paredes
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  2. Marcelo Lufin
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  3. Patricio Aroca
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Correspondence to Dusan Paredes .

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Editors and Affiliations

  1. , Applied Economics (RegioLab), University of Oviedo, Campus del Cristo s/n, Oviedo, 33006, Spain

    Esteban Fernández Vázquez

  2. , Applied Economics (RegioLab), University of Oviedo, Campus del Cristo s/n, Oviedo, 33006, Spain

    Fernando Rubiera Morollón

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Paredes, D., Lufin, M., Aroca, P. (2012). The Estimation of Urban Premium Wage Using Propensity Score Analysis: Some Considerations from the Spatial Perspective. In: Fernández Vázquez, E., Rubiera Morollón, F. (eds) Defining the Spatial Scale in Modern Regional Analysis. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-31994-5_11

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  • DOI: https://doi.org/10.1007/978-3-642-31994-5_11

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