@article{ART002449407},
author={MINYOUNG KIM and Up Lim},
title={Mechanisms of Agglomeration Economies and Inter-regional Wage Gap in Korea},
journal={The Korea Spatial Planning Review},
issn={1229-8638},
year={2019},
volume={100},
pages={25-44},
doi={10.15793/kspr.2019.100..005}
TY - JOUR
AU - MINYOUNG KIM
AU - Up Lim
TI - Mechanisms of Agglomeration Economies and Inter-regional Wage Gap in Korea
JO - The Korea Spatial Planning Review
PY - 2019
VL - 100
IS - null
PB - 국토연구원
SP - 25
EP - 44
SN - 1229-8638
AB - This study aims to identify which mechanisms of agglomeration economies have generated inter-regional wage gap between the capital region and the non-capital region in Korea. The mechanisms of agglomeration economies are divided into sharing, matching, and learning mechanisms. Based on the framework of the pioneering work of Glaeser and Maré(2001), we estimate a wage level effect and a wage growth effect by examining the wage patterns of migrants. The former effect implies the sharing mechanism and the latter effect implies the matching or learning mechanisms. Random effects models are used to estimate the wage pattern of migrants from the non-capital region to the capital region between 1998 and 2015. Since the positive correlation between unobserved ability and where to live leads to an upward bias in the estimate, we also use the Hausman and Taylor approach for valid estimation of the wage level effect. Our findings indicate that workers had experienced immediate wage growth shortly after migrating to the capital region. However, their wages did not grow gradually after migrating to the capital region. Among the three mechanisms, we conclude that the sharing mechanism best accounts for the inter-regional wage gap.
KW - Inter-regional Wage Gap;Agglomeration Economies;Wage Level Effect;Wage Growth Effect;Random Effects Model;Omitted Ability Bias
DO - 10.15793/kspr.2019.100..005
ER -
MINYOUNG KIM and Up Lim. (2019). Mechanisms of Agglomeration Economies and Inter-regional Wage Gap in Korea. The Korea Spatial Planning Review, 100, 25-44.
MINYOUNG KIM and Up Lim. 2019, "Mechanisms of Agglomeration Economies and Inter-regional Wage Gap in Korea", The Korea Spatial Planning Review, vol.100, pp.25-44. Available from: doi:10.15793/kspr.2019.100..005
MINYOUNG KIM, Up Lim "Mechanisms of Agglomeration Economies and Inter-regional Wage Gap in Korea" The Korea Spatial Planning Review 100 pp.25-44 (2019) : 25.
MINYOUNG KIM, Up Lim. Mechanisms of Agglomeration Economies and Inter-regional Wage Gap in Korea. 2019; 100 25-44. Available from: doi:10.15793/kspr.2019.100..005
MINYOUNG KIM and Up Lim. "Mechanisms of Agglomeration Economies and Inter-regional Wage Gap in Korea" The Korea Spatial Planning Review 100(2019) : 25-44.doi: 10.15793/kspr.2019.100..005
MINYOUNG KIM; Up Lim. Mechanisms of Agglomeration Economies and Inter-regional Wage Gap in Korea. The Korea Spatial Planning Review, 100, 25-44. doi: 10.15793/kspr.2019.100..005
MINYOUNG KIM; Up Lim. Mechanisms of Agglomeration Economies and Inter-regional Wage Gap in Korea. The Korea Spatial Planning Review. 2019; 100 25-44. doi: 10.15793/kspr.2019.100..005
MINYOUNG KIM, Up Lim. Mechanisms of Agglomeration Economies and Inter-regional Wage Gap in Korea. 2019; 100 25-44. Available from: doi:10.15793/kspr.2019.100..005
MINYOUNG KIM and Up Lim. "Mechanisms of Agglomeration Economies and Inter-regional Wage Gap in Korea" The Korea Spatial Planning Review 100(2019) : 25-44.doi: 10.15793/kspr.2019.100..005
