Regional price levels and the agglomeration wage differential in western Germany

Gartner H, Blien U, Stüber H, Wolf K (2009)

Publication Status: Accepted

Publication Type: Journal article

Publication year: 2009

Journal

The annals of regional science Springer Verlag (Germany)

Original Authors: Blien Uwe, Gartner Hermann, Stüber Heiko, Wolf Katja

Publisher: Springer Verlag (Germany)

Book Volume: 43

Pages Range: 71-88

Journal Issue: 1

DOI: 10.1007/s00168-007-0205-8

Abstract

We analyse whether wage differences between cities and rural areas in western Germany are due to unobserved differences in regional price levels. Since regional prices are available for only 10% of the regions we use multiple imputation to generate prices for all regions. Our results show that the nominal agglomeration wage differential is 25%, whereas the real differential is 19%. If we control for the composition of the labour force and jobs, the real wage differential is 4%. If we additionally control for differences in regional building land prices the agglomeration wage differential vanishes.

Authors with CRIS profile

Hermann Gartner Lehrstuhl für Volkswirtschaftslehre mit dem Schwerpunkt Entwicklungsökonomik Heiko Stüber Lehrstuhl für Volkswirtschaftslehre, insbesondere Makroökonomik

Involved external institutions

Institut für Arbeitsmarkt- und Berufsforschung (IAB) der Bundesagentur für Arbeit (BA) DE Germany (DE)

How to cite

APA:

Gartner, H., Blien, U., Stüber, H., & Wolf, K. (2009). Regional price levels and the agglomeration wage differential in western Germany. The annals of regional science, 43(1), 71-88. https://doi.org/10.1007/s00168-007-0205-8

MLA:

Gartner, Hermann, et al. "Regional price levels and the agglomeration wage differential in western Germany." The annals of regional science 43.1 (2009): 71-88.

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