Regional wage differentials in the public sector

Masayuki Morikawa 23 November 2014

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After the global financial crisis, some European countries reduced their public sector wages to ensure fiscal sustainability. In Japan, after the Great East Japan Earthquake, the wages of the central government officials were cut for two years to finance the reconstruction expenses. Even in normal times, the appropriate level of public sector wages is debated frequently in every country. Because wages are an important incentive for workers, appropriate wage levels and their structure in the public sector are essential for ensuring the quality and efficiency of public services.

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Topics:  Labour markets

Tags:  fiscal sustainability, global crisis, Public sector wages, public-sector pay, Public sector, private sector, Great East Japan Earthquake, Japan, Europe, agglomeration, spatial equilibrium, wages, wage premia, regional wage differentials

The economics of density: Evidence from the Berlin Wall

Gabriel M. Ahlfeldt, Stephen Redding, Daniel M. Sturm, Nikolaus Wolf 20 August 2014

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Economic activity is highly unevenly distributed across space, as reflected in the existence of cities and the concentration of economic functions in specific locations within cities, such as Manhattan in New York and the Square Mile in London. Understanding the strength of the agglomeration and dispersion forces that underlie these concentrations of economic activity is central to a range of economic and policy questions. These forces shape the size and internal structure of cities, with implications for the incomes of immobile factors, congestion costs, and city productivity.

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Topics:  Europe's nations and regions Global economy Productivity and Innovation

Tags:  Berlin, agglomeration, dispersion, density

Agglomeration and product innovation in China

Hongyong Zhang 21 July 2014

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Spatial agglomeration of economic activities is generally assumed to improve productivity and spur firms’ innovation through localisation economies and urbanisation economies.1 There is an extensive empirical literature investigating the effects of localisation and urbanisation on firm-level productivity. Despite its economic importance, there are few empirical studies focusing on agglomeration and product innovation. Feldman and Audretsch (1999) and De Beule and Van Beveren (2010) are two of the few exceptions.

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Topics:  Productivity and Innovation

Tags:  R&D, productivity, China, spatial concentration, innovation, subsidies, clusters, agglomeration

How history can contribute to better economic education

Coen Teulings 11 July 2014

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Historians tend to stress the particularities in history. Each event is unique, caused by a set of conditions that will never reproduce themselves again. In turn, each event causes new events, which therefore are equally unique and equally irreproducible. Hence, historians conduct painstaking research into the details of these conditions to understand the course of history.

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Topics:  Economic history Education

Tags:  geography, institutions, Agriculture, economic history, Industrial Revolution, urbanisation, agglomeration, history, new economic geography

Did the internet prevent all invention from moving to one place?

Chris Forman, Avi Goldfarb, Shane Greenstein 23 May 2014

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Reading the technology press, it often seems as if the media think all high-tech invention happens in Silicon Valley. This parochial viewpoint highlights the ‘agglomeration’ advantages that the Valley provides to inventors because so many technology firms are located in the same place. These advantages include easier access to funding from local venture capitalists, sharing of fixed costs such as specialised patent lawyers, and easier exchange of ideas between researchers.

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Topics:  Frontiers of economic research Productivity and Innovation

Tags:  patents, information technology, technology, agglomeration, internet, economic geography, invention

Making city lights shine brighter

Shahid Yusuf, Danny Leipziger,

Date Published

Mon, 03/03/2014

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Tags
growth, Inequality, externalities, cities, urbanisation, agglomeration, slums

Making city lights burn brighter

Danny Leipziger, Shahid Yusuf 03 March 2014

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Urbanisation and per capita GDP are well correlated.1 According to a recent estimate by Gilles Duranton using cross-country data for 2012 (see Figure 1), each percentage point of urbanisation is associated with a five-percentage-point increase in GDP per capita, with urbanisation apparently explaining 60% of the variation in incomes.

Figure 1. Urbanisation and GDP per capita

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Topics:  Development

Tags:  growth, Inequality, externalities, cities, urbanisation, agglomeration, slums

Historical trends of agglomeration to the capital region

Takatoshi Tabuchi 28 November 2013

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Postwar trends

The first stylised fact about regional population distribution is the steady progress of urbanisation. As shown in Figure 1, the urban population percentage has been steadily growing for a long time all over the world (United Nations 2011).

Figure 1. Urban population share by major geographical area

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Topics:  Migration

Tags:  cities, urbanisation, agglomeration, new economic geography, capital cities

Competing successfully in a globalising world: Lessons from Lancashire

Nicholas Crafts, Nikolaus Wolf 22 October 2013

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The ‘first globalisation’ of the 19th century – driven by the substantial falls in trade costs associated with the age of steam – saw the ‘First Unbundling’ (Baldwin 2006), in which industrial production and consumption became spatially separated, often by large distances. The period was characterised by the simultaneous processes of industrialisation in Europe and de-industrialisation in Asia (Table 1).

Table 1. Shares of world manufacturing output (%)

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Topics:  Economic history International trade

Tags:  globalisation, wages, trade, Industrial Revolution, cities, agglomeration, industrialisation, Lancashire, cotton

Do large departments make academics more productive? Agglomeration and peer effects in research

Clément Bosquet, Pierre-Philippe Combes 21 June 2013

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Every academic has an opinion about what makes a good department. Surprisingly, there are few hard studies quantifying this precisely, although possible implications for an optimal design of education and research policies are numerous. Aghion et al. (2010) is an example of the general recent concern about the optimal design and governance of universities.

In our recent work, we try to start filling this gap and study the effect on individual publication records of a large set of department characteristics (Bosquet and Combes 2013).

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Topics:  Education Productivity and Innovation

Tags:  France, Peer Effects, agglomeration

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