Regional Wage Differences in the Netherlands: Micro-Evidence on Agglomeration Externalities

Arbeitspapier

Based on micro-data on individual workers for the period 2000-2005, we show that wage differentials in the Netherlands are small but present. A large part of these differentials can be attributed to individual characteristics of workers. Remaining effects are partially explained by variations in employment density, with an elasticity of about 3.8 percent and by Marshall-Arrow-Romer externalities, where doubling the share of a (2-digit NACE) industry results in a 2.4 percent higher productivity. We find evidence for a negative effect of competition (associated with Porter externalities) and diversity (associated with Jacobs externalities).

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 11-050/3

Classification and Topics

• Classification: Wirtschaft ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Microeconomic Analyses of Economic Development ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
• Subject: regional labour markets ; wage differentials ; agglomeration externalities ; Regionale Lohnstruktur ; Regionaler Arbeitsmarkt ; Agglomerationseffekt ; Niederlande

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Groot, Stefan P.T. ; de Groot, Henri L.F. ; Smit, Martijn
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/86965
• Last update: 10.03.2025, 11:43 AM CET