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The large and persistent wage gap between the Bangkok Metropolitan Region and its peripheries remains a major concern for policymakers and civil society. Theoretically, these regional disparities exist due to differences in workforce skills and the local characteristics of the regions. This study empirically investigates the sources of spatial wage disparity in Thailand using data sets from the Labor Force Survey, the Industrial Census, geospatial data, and satellite imagery for the years 2007, 2012, and 2017. The two-stage estimation method was applied, and the soil clay content was used as the instrumental variable for correcting endogeneity and variable bias omission. The results show that workers' education and experience affect the wage differential. Other than individual skills, workers also benefited from the agglomeration externalities of large cities. Specifically, the effect of agglomeration externalities on wages in Thailand was found to be statistically significant. To overcome the paradox of a low urbanization rate and high urban primacy in Thailand, this study suggests the establishment of multiple regional cities that create high agglomeration externalities. [ABSTRACT FROM AUTHOR]

This paper is an empirical analysis of employment centres in the Los Angeles region from 1997 to 2014. Most extant work on employment centres focuses on identification methodology or their dynamics during a period of industrial restructuring from 1980 to 2000. We analyse employment centres using point-based, rather than census tract-based employment data and a non-parametric identification method with a single concept of proximity. We focus on changes across five key industries: knowledge-intensive business services (KIBS), retail, creative, industrial and high-tech, emphasising changes in centre composition as well as their boundaries. Results show far greater change across centres than previous longitudinal studies. Only 43% of the land area that is in an employment centre is part of one in both 1997 and 2014. Using a persistence score, centres range from stable to highly fluctuating, but emerging, persisting and dying centres are found in core and fringe areas alike. KIBS are most associated with stable centres, while high tech employment is attracted toward emerging areas and retail exists throughout. Emerging centres are more likely to have greater accessibility, while industrial employment becomes far more concentrated in centres by 2014.

In recent years, some researchers have used the concept of "Borrowed size" as a justification for the efficiency of small and medium-sized cities in Poly-centric urban regions. They believe that smaller cities located near or within an integrated functional urban area can take advantage of the population, facilities, and amenities of larger cities while avoiding the agglomeration costs of larger cities such as traffic, high housing prices, and congestion. In this regard, the present article tries to use this concept, in addition to explaining the growth of the furniture industry in the city of Bahnamir, to open the way for its application in urban and regional policies. For this purpose, the applicability of this concept in Bahnamir was measured in four phases: first, specialization and concentration using locational coefficient and firm density, second, a geographical overlap of demand market by connectivity field index, third measurement polycentricity using Green indicator and entropy of daily travel flow data, and finally, the balance between agglomeration economies and diseconomies using Correspondence analysis. Findings show that the city has been able to access the market demand of larger and coastal cities, lower production costs due to cheap land prices, land ownership and cheaper labor, and increasing returns become into a specialized furniture market that achieves better performance than larger cities by increasing competition, lowering prices, diversity and competition. In this regard, it is suggested that this concept could be used as support to reconsider the development role of small and medium-sized cities.

The reasons for changes in ranking within urban systems are a matter of a wide and long debate. Some focus on a continuous and smooth ordering of cities by their size within the urban system, in the tradition of Zipf's law. Others focus on discrete, discontinuous ordering, as cities take on functions at different levels, such as specialized market places or high-level education, in the tradition of Christaller. We enter the debate by empirically evaluating whether the same determinants explain continuous or discrete changes in urban ranks in the evolution of the Italian urban hierarchy over the years 1971 to 2011. We empirically show that small, continuous changes of cities' ranks have different drivers than large, discontinuous leaps. The presence of high-level functions in a city predicts major leaps across discrete ranks. Results are robust to the use of an instrumental variable strategy based on a shift–share argument. [ABSTRACT FROM AUTHOR]

Most developing countries have large and persistent informal sector. Historically, the literature was dominated by strict duality viewpoint, where the formal and informal sectors are treated as two separate entities. However, in recent times, a new approach has developed where the formal and informal sectors are not binary but they often co-exist and feed into each other. Most academic work on agglomeration economies is based on developed countries where almost all production takes place in the formal sector. Apriori, there is no reason to believe that agglomeration economies do not extend to the informal sector. Hence, in this paper, we hypothesize that agglomeration economies can arise from the interaction between formal and informal firms as well. To check the validity of the hypothesis, we study the geographic distribution and Coagglomeration pattern between formal and informal manufacturing firms in India. Using the firm level National Sample Survey for unincorporated enterprises and Annual Survey of Industries data, we calculate the Ellison and Glaeser Coagglomeration index at 2-digit NIC level. Further, using the Marshall's theory of agglomeration, we create four kinds of linkages to capture the nature of interdependence between formal and informal firms, i.e. Buyer, Supplier, Labor and Technology. We find that there is heavy clustering of both formal and informal manufacturing firms in India, however, mostly in different areas, with few exceptions like Western Uttar Pradesh and Southern Tamil Nadu. Out of 22 major industries, we find high coagglomeration only in 7. The average value of coagglomeration index at aggregate level decreases from 0.00536 in 2000-01 to -0.0027 in 2015-16. This indicate towards reduced interdependence over time, however in few industries it remains high. The average value of labor linkage increased from 0.1889 in 2000-01 to 0.3651 in 2015-16, during the same period buyer linkage remained constant around 0.2481 and supplier linkage fell from 0.5755 to 0.2749. The technology linkage remained low throughout in the range of 0.02-0.03. Strong buyer and labor linkage mean subcontracting of inputs is the main motive driving the interaction between formal and informal firms. [ABSTRACT FROM AUTHOR]

The severity of the 2007–2008 global financial crisis and the spatial heterogeneity of its impact have accelerated the study of regional economic resilience. However, few have investigated whether pre-crisis determinants impact regional economic resilience. This study explores the factors influencing regional economic resilience across 284 Chinese cities from 2003 to 2019. We use data from the National Bureau of Statistics in China and apply a multilevel logistic regression model. The results indicate the magnitude of the province effects on regional performance during the financial crisis. The results show that regional economic resilience is significantly shaped by provincial trajectories and region size. Furthermore, economic agglomeration, manufacturing, education, infrastructure, and financial development make regions less susceptible to external shocks and more resilient to financial crises. The results provide supportive evidence for governments to adopt region-based policies and thereby improve their performance. [ABSTRACT FROM AUTHOR]

This paper examines empirically the economic relationship between local labour market size and firm returns to training. Anchoring in the literature of micro‐foundation of agglomeration economies, we suspect that this relation is driven by two mechanisms: (i) labour pooling which should positively influence the returns to training through matching and learning effects and (ii) the risk of labour poaching, which tends to reduce the returns to training in larger labour markets. Our estimates, based on a large sample of French industrial firms, reveal that returns to training are increasing with the labour market size, suggesting that labour pooling dominates labour poaching effects. On average, returns to training lie between 6.7 and 7.7%, more in line with the microeconomic literature on education than previous studies focusing on training. [ABSTRACT FROM AUTHOR]

Copyright of Estudios Demográficos y Urbanos is the property of El Colegio de Mexico AC and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Do workers benefit from proximity to other workers with similar skill sets? This question dates back at least to Alfred Marshall. We use occupation groups to proxy skill sets and show that the answer likely depends on geographical levels, as well on regional hierarchy. Using longitudinal Swedish data, we document robust evidence consistent with highly localized spillovers at the level of sub-city districts between individuals in similar occupations. We further demonstrate less distance-sensitive benefits of working in districts and regions, characterized by high overall density (of employees in other occupations). We find no evidence of benefits from overall density outside Sweden's three main metropolitan areas. [ABSTRACT FROM AUTHOR]

This paper develops a new unified theoretical general equilibrium model in which the interactions between heterogeneous workers and firms influence heterogeneous city evolutions. Given the heterogeneous worker–firm–city framework, I study in depth the possible heterogenous city evolutions and the resulting implications on the labor market, as well as on overall productivity. In particular, it is shown that the same exogenous shocks may lead to completely different results depending on the relative dominance of the two countervailing effects of congestion and agglomeration. In an open economy setting, it is also shown that such relative dominance may affect the trading partner and generate the comovement of city evolution in each country.

Numerous studies have established strong connections between air traffic and economic growth at the regional level. However, without consideration of individual airports’ immediate vicinities, this aggregate view can lead to an overly simplistic conclusion about the role of airports in their urban environment. The impact of airports on local economic development is evaluated through a case study of Brisbane Airport by using primary data sourced from semi-structured interviews and a survey. The results demonstrate that the role of airports as transport hubs is not the dominant mechanism that drives industries to locate in airport areas. Rather, the local urban context is a dominant driver for development in and around airports. Based on the survey and interview results, urbanization economies have the highest significance on the landside industrial location decision, with a mean of 3.53 in terms of importance level. The findings provide a reference for policymakers regarding investment in airport expansion or construction, as well as a refinement of the understanding of the local economic impact of airports.

Using a network approach that circumvents well-known challenges in estimating peer effects, we show that interactions with a firm's geographic neighbors play a significant causal role in corporate investment behavior and a modest role in financial policies and firm performance. Moreover, these geography network effects are almost entirely driven by propagation effects through product market and supply chain networks. We corroborate our findings in a quasi-experimental framework that allows for spillovers in treatment effects. Our findings help rationalize industrial clusters (e.g., Silicon Valley), as they illustrate that agglomeration economies are substantial and operate predominantly within industry boundaries. This paper was accepted by David Simchi-Levi, finance. [ABSTRACT FROM AUTHOR]

This study foregrounds the metropolitan area as a key driver of contemporary neighborhood economic change. The recent "Great Divergence" in metros' economic, social, and political conditions suggests metros increasingly stratify neighborhood trajectories. Yet, many studies only consider neighborhood-level predictors of change or implicate metro-level factors more applicable to the twentieth century (e.g., manufacturing exposure) than the twenty-first. To clarify the metro's contemporary role, this study synthesizes multiple literatures, deriving novel hypotheses that link metropolitan skill agglomeration and income segregation to neighborhood economic change, and then tests them using multilevel models and data drawn from multiple sources, including the census, Opportunity Insights, and National Transit Database. Analyses, based on all neighborhoods within 325 metros between 2000 and the mid-2010s, suggest over 10% of the variance in neighborhood median income change resides between, rather than within, metros. As predicted, metro skill agglomeration dynamics appear to boost neighborhoods' median incomes, and metro income segregation depresses them. Results remain intact after accounting for state fixed effects and controls for five plausible alternative explanations of metro effects. Overall, the study provides a theoretical and empirical foundation for future neighborhood change research highlighting the metro in general, and two higher order spatial processes—income segregation and skill agglomeration—in particular. [ABSTRACT FROM AUTHOR]

Despite the increasing relevance of knowledge-based activities in the global economy, their spatial distribution at the intrametropolitan scale has rarely been studied. The aim of this paper is to shed light on the intrametropolitan spatial localisation of knowledge-based activities by assessing some of its main causal mechanisms, paying special attention to agglomeration economies and borrowed size (both questioned in the era of Information and Communications Technologies because of the theorised 'death of distance'), the controversial role of industrial diversity and specialisation (traditionally considered exclusive processes) and path dependence. The empirical application refers to the case of the Madrid urban region for the period between 2012 and 2017. This study area proves particularly appropriate for two main reasons. First, the area is a main urban region in the European and global urban systems. Second, the area is a good example of a multicore urban region with a traditionally strong metropolis. The results show that the knowledge economy remains strongly dependent on the size of the city itself (agglomeration economies) and of the surrounding areas (borrowed size), that the specialisation and diversity processes are complementary and appear at different scales and that in the specialisation of certain areas in some knowledge economy activities, the city's trajectory (path dependence) plays an important role. The results of the present study have various practical implications for policymakers when considering not only strategies (and investments) to coordinate land availability, worker training, connections between research centres and companies and amenities but also strategies to coordinate with the surrounding municipalities (e.g. in terms of mobility or joint public and private projects). [ABSTRACT FROM AUTHOR]

We study the effects of crime and agglomeration on the value of urban amenities using data for 134 locations in New Zealand and report three key findings. First, the negative effects of crime operate mostly via rents, with elasticities that range from − 0.15 to − 0.44. Accounting for endogeneity leads to larger elasticities in most specifications, possibly due to sorting effects. Second, crime has negative effects on the value of urban amenities, with elasticities that range from approximately − 0.03 to − 0.06 for firms and − 0.02 to − 0.09 for workers. Using reduced-form models, we show that these effects imply an elasticity of population with respect to crime of − 0.04 to − 0.10. Third, controlling for crime causes estimates of agglomeration economies to increase by approximately 0.01–0.02 points, on average. Our findings confirm that crime is an important urban congestion cost that erodes productivity and well-being. • Uses a location choice model to analyse the effects of crime and agglomeration on the value of urban amenity via rents and wages. • Finds crime has significant negative effects on rents and – by extension – urban amenities, agglomeration economies, and population. • Results confirm that crime is a significant urban congestion cost that erodes productivity and well-being. [ABSTRACT FROM AUTHOR]

Achieving policy goals often requires different policies for different places, but the assignment of places to policies is often arbitrary, political, or based on anecdotal evidence. We argue that there are simple analytical techniques to improve policy by allocating places into corresponding 'policy regimes' in a more objective manner. We show how to implement this approach using a threshold model and relate the policy design to the underlying concept of agglomeration economies. Policies are implicitly based on an underlying hypothesis that adjusting specific factors will generate the desired outcome. The threshold approach modifies the underlying theory to allow for stepwise regimes, rather than a continuous function. These regimes determine bands of similar regions, or thresholds define when key variables have the greatest rate of rapid change in slope. Policy-makers can then assign places to policy regimes either according to bands in which similar places would require similar policy settings, or to target places just below thresholds to achieve greater impact by shifting places between thresholds. Bands and thresholds are determined by the data, rather than by anecdotal evidence, arbitrary assignment, bureaucratic experience, or political aims. We use the example of agglomeration economies in Australian cities to demonstrate this suggested approach. • This study proposes that a threshold regression can be used to objectively inform place-based policy designs. • The approach is applied to examining agglomeration economies in Australia to inform the design of regional work visas. • The results show that agglomeration economies strengthen across the range of sizes of Significant Urban Areas in Australia. • The absence of agglomeration diseconomies in the results suggests that policy should not prevent settlement in the largest cities. • Thresholds imply that cities with working age populations just below 30,104 and 91,148 would benefit from increases in size. [ABSTRACT FROM AUTHOR]

Polycentricity is at the core of the urban policy and planning debate on both city size and spatial configuration, but there is no conclusive evidence for how and when polycentricity can improve urban agglomeration efficiency. This study examines the impacts of polycentricity, as well as features of its spatial configurational, on urban agglomeration efficiency. An improved relative threshold method based on local isolines (IRT-LI) is developed to identify urban centers and sub-centers, and this indicator is regressed against agglomeration economic efficiency acquired through an input-output method—super-slack-based measure (Super-SBM). Taking 252 prefectural-level cities in China as examples, this study finds that polycentricity does not demonstrate any linear or U-Shape impact on the agglomeration economy efficiency of all cities, while the impacts become positive only when urban population and central city density surpass certain thresholds (population over 6 million and density over 6000 people/km2). Compactness in density and balance in the size of multiple centers are key spatial configurational features to improve economic efficiency, while the number of centers should only be increased for large size and high-density cities. Policymakers and planners are encouraged to limit polycentric planning only to megacities/mega-city-regions and combine compact, multi-functional, mixed land-use spatial configurations with polycentricity. • Impacts of polycentricity and configuration on economic efficiency are examined. • An IRT-LI method is developed to identify urban centers and sub-centers. • Polycentricity does not demonstrate any significant impact on economic efficiency. • The impacts become positive when population and density surpass certain thresholds. • Compactness in density and balance in the size are key configurational feature. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between regional characteristics and smart factory adoption in South Korea by analyzing smart factory data. Our findings reveal that agglomeration economies and regional occupational structures significantly influence smart factory adoption. Moreover, we identified a neighboring effect, where the presence of existing smart factories within a region fosters further adoption, underscoring the impact of local industrial ecosystems on the diffusion of smart technologies. Our findings show that the impacts of agglomeration economies, occupational structures, and neighboring effects on smart factory adoption vary across different technology levels of smart factories and types of regions, suggesting a complex interplay between regional dynamics and technological advancement in the adoption process. • Regional factors affecting smart factory adoption in South Korea were studied. • The agglomeration economies and occupation structures of regions are significant. • The concentration of existing smart factory factories can promote further adoption. • However, technology levels and region types can affect the frequency of smart factory adoption. [ABSTRACT FROM AUTHOR]

Manufacturing activities are at the heart of contemporary capitalist economies, with observable geographical patterns of production. Debates about the interconnections between transportation technology advancements and land use acknowledge that airports can influence the spatial distribution of firms, including those involved in manufacturing. However, the manufacturing-related literature describes the land-use mix of airports and their surroundings without an in-depth spatial economic analysis of the firms positioned near airports. This study aimed to conduct a spatial economic analysis of manufacturing firms positioned in the environs of Cape Town International Airport, South Africa. Primary data were collected through survey interviews conducted with the representatives of 23 manufacturing firms situated in the environs of the airport. The study discovered the potential existence of a spatial cluster of manufacturing firms. This cluster is characterized by dense inter- and intraindustry linkages within the study area. It is recommended that planning authorities and other stakeholders augment the clustering of manufacturing firms in the vicinity of Cape Town International Airport, which comprises firms with direct and indirect linkages with the airport.

International trade is one of the key spheres of economic policy. It is crucial for a country to understand the dynamics of its export markets to create a coherent strategy to improve its position in global markets. Research in this field is particularly interesting for both economists and policy makers. However, due to a lack of data, most of the well-established literature is focused on the national level. Therefore, there is little evidence on the influence of local characteristics on export markets. This research aims to evaluate the influence of regional factors on the competitiveness of firms in international markets, focussing on the importance of agglomeration economies and location, among other local factors. To identify this influence, this paper studies the case of Brazil. This country offers rich disaggregated information that allows this type of research and displays enormous differences across rural and urban areas. Given these differences, the assumption of homogeneous effects is too restrictive. Therefore, to study the patterns across different territories around the country, Geographically Weighted Generalized Linear Model (GWGLM) method is applied. The results indicate an interaction between location and the influence of several local characteristics such as human capital, the degree of development and the local economic structure. This relationship creates virtuous circles in a few locations where urban agglomerations create a suitable environment for firms, while opposite patterns appear in other locations. JEL codes: F14, R11 and R12 [ABSTRACT FROM AUTHOR]

A surprising aspect of the agglomeration economy is the lack of attention to the impact on the physical environment. Even in the field of spatial planning, road infrastructure has been built in situations where the consideration of the agglomeration economy is insufficient. The urban scaling proposed by theoretical physicists is an excellent tool to solve this problem but is only at the level of conceptually comparing the index values extracted by individually scaling socioeconomic indicators and urban infrastructure with the population. Accordingly, the frame model scales the urban infrastructure with the number of workers by industry sector and includes a density externality structure so that the agglomeration economy and urban infrastructure can be linked directly. Three experiments were conducted to verify the frame model: first, the Zipf distribution of economic activity found straight lines in large cities, peaks in medium cities and hills in small cities; the cities were categorised by urban size. The second experiment verified that linearisation was due to Jacobs externalities, while the third confirmed that the peak was due to Marshall–Arrow–Romer externalities. Moreover, in distinguishing traditional and modern industries, thresholds of 0.6 in agglomeration and 1.0 in economic interaction were found. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between urban agglomeration and firm innovation using a recently developed dataset that consistently measures city boundaries across Asia together with geo-referenced firm-level data. It finds that the spatial distribution of innovation by firms is highly concentrated within countries. Further, firms in larger cities have substantially higher propensities to introduce product and process innovations and to undertake R&D activities, a result that holds for subgroups of countries and even when the largest cities are excluded from the analysis. Finally, the presence of high-quality universities and highly ranked engineering departments in cities is positively associated with firm innovation, lending support to the idea that the accumulation of human capital locally is a key channel through which urban agglomeration affects innovation. [ABSTRACT FROM AUTHOR]

The effects of a rural roads programme depend on labour mobility, how the programme is financed, and agglomeration economies. If financed by a rural poll tax and cross‐price effects and agglomeration economies are sufficiently small, the wage will rise, with some return migration. Taxes on trade act as countervailing distortions, yielding urban households some relief. Rural‐urban commuting promotes the exploitation of agglomeration economies; taxes on international trade are then inferior to a poll tax. The change in the value, at producer prices, of the rural sector's net supply vector can be a poor measure of the programme's social profitability. [ABSTRACT FROM AUTHOR]

This investigation explores the micro-heterogeneity of industrial clustering of registered Indian manufacturing firms and examines the roles of Marshallian agglomeration and localization economies and location-specific policy incentives. The empirical results suggest that of localization economies, only inter-industry buyer–supplier relationships and labour market pooling play significant roles in industrial clustering. Location-specific incentives such as the designation of special economic zones have a positive effect on the co-agglomeration of industries, whereas location-specific tax incentives do not have such an effect, except in the cases of new entrants. [ABSTRACT FROM AUTHOR]

We use the entry of 17 external shopping malls in Sweden to investigate how they have affected the performance of incumbent firms located in the city centres of small cities. Estimating a traditional fixed effects regression model while controlling for firm-specific heterogeneity, we find that entry by external shopping malls decreased the labour productivity of incumbent firms in city centres by 5.31%. Revenues decrease by 6.62%, while the reduction in the number of employees (0.45%) is small and not significantly different from zero. However, using time-specific fixed effects to control for common time trends in retailing in small cities, we find that the impact on labour productivity, revenues and the number of employees due to the entry of external shopping malls becomes insignificant. Thus, incumbent firms in small cities have a negative development path mainly due to long-term economic trends, possibly because of the combination of urbanization effects and a lack of local investments. [ABSTRACT FROM AUTHOR]

This paper analyses the influence of agglomeration and spatial sorting on wages in Brazilian cities. The empirical strategy is based on a two‐step estimation. The first step estimates a wage equation with the observed characteristics of workers and firms and location effects. The second step decomposes the location effects into employment density and fixed effects of firm and worker. We estimate an urban wage premium for a developing country with the simultaneous inclusion of worker and firm fixed effects, instrumental variables, and nighttime lights. We find agglomeration effects of 4.3–5.7%, which are larger than those obtained for developed countries. [ABSTRACT FROM AUTHOR]

Through an analysis of total factor productivity for European regions using an econometric identification strategy, we find that significant impacts exist for both urban size and structure. A larger urban size positively affects regional productivity. Polycentric urban structures have no directly identified impacts on productivity. We find that an interaction between urban size and polycentricity has a negative effect, suggesting that polycentric regions are unable to substitute for the economic urbanization externalities associated with a single large city. These findings have important implications for the European Union-wide policy agenda on urban development and regional productivity. [ABSTRACT FROM AUTHOR]

Copyright of Anuario Turismo y Sociedad is the property of Universidad Externado de Colombia, Facultad de Empresas Turísticas y Hoteleras and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The competitive power of cities that emerged within the context of agglomeration economics is also one of the interesting research topics. In this study, the importance, advantages and disadvantages of urbanization economies will be discussed after analyzing localization economies that strengthen competition by specializing and urbanization economies that strengthen competition by sharing within the scope of static agglomeration economies as the key of competitive cities. Then, where agglomeration economies are going will be explained with examples of cities from Organisation for Economic Cooperation and Develeopment (OECD) countries. In the continuation of the study, the current dilemmas of competitive cities are examined and how agglomeration economies and the competitive power of cities are changing and are investigated with the Covid-19 pandemic. It seems an obvious phenomenon that digitalization will gain speed. At this point, "Contactless Agglomeration" emerges as a new dimension in proximity theories and it will increase rapidly. In the next period, cities will gradually turn into smart cities in order to maintain their competitive power. The Covid-19 pandemic leads cities to create smart working systems. As a result, competitive cities in the global economy will turn today's conditions into an opportunity for change and maintain their competitive power. [ABSTRACT FROM AUTHOR]

This paper studies urban growth in Korean cities. First, I document that population growth patterns change over time and that the current population distribution supports random urban growth. I confirm two empirical laws—Zipf’s law and Gibrat’s law—both of which hold in the period of 1995-2015, but do not hold in the earlier period of 1975-1995. Second, I find a systematic employment growth pattern of Korean cities in spite of the random population growth. I examine market access effects on employment growth. Market access, a geographical advantage, has a significant influence on urban employment growth. The market access effect is higher in the Seoul metropolitan area than in the rest of the country. This effect is stronger on employment growth in the manufacturing industry compared to employment growth in the service industry. These results are robust with various checks (e.g., different definitions of urban areas). The results here suggest that policymakers should consider geographical characteristics when they make policy decisions with respect to regional development.

As the net effect of agglomeration on entrepreneurship depends on the trade-off between positive and negative effects, urban agglomeration can either promote or discourage entrepreneurial activity in theory. However, there is an unexpected shortage of empirical confirmations on this potential cause-and-effect relationship. Our study strives to fill this empirical gap by providing credible evidence whether agglomeration, measured by the urban density or population, increases the probability of individuals being self-employed. Based on the China Labor-Force Dynamic Survey of 2012, 2014, and 2016, we find that big cities fail to facilitate individuals to start or run their own businesses. Further analyses illustrate that the entrepreneurs in large cities can be easily tempted by a wider range of salaried opportunities and are generally exposed to high fixed costs and intense competition. In contrast, entrepreneurship in large cities is of high reward. These results serve as direct evidence of the co-existence of agglomeration diseconomies and economies. This also suggests the direction of government policy in large cities, which is to alleviate, as much as possible, the negative impact on entrepreneurs.

The large and persistent wage gap between the Bangkok Metropolitan Region and its peripheries remains a major concern for policymakers and civil society. Theoretically, these regional disparities exist due to differences in workforce skills and the local characteristics of the regions. This study empirically investigates the sources of spatial wage disparity in Thailand using data sets from the Labor Force Survey, the Industrial Census, geospatial data, and satellite imagery for the years 2007, 2012, and 2017. The two-stage estimation method was applied, and the soil clay content was used as the instrumental variable for correcting endogeneity and variable bias omission. The results show that workers’ education and experience affect the wage differential. Other than individual skills, workers also benefited from the agglomeration externalities of large cities. Specifically, the effect of agglomeration externalities on wages in Thailand was found to be statistically significant. To overcome the paradox of a low urbanization rate and high urban primacy in Thailand, this study suggests the establishment of multiple regional cities that create high agglomeration externalities.

In order to investigate the role of immigrant artists on the development of artistic clusters in U.S. cities, we use the U.S. Census and American Community Survey, collected every 10 years between 1850 and 2010. We identify artists, authors, musicians, actors, architects, and journalists, their geographical location and their status as a native or an immigrant. We look at the relative growth rate of the immigrant population in these occupations over a ten year period and how it affects the relative growth rate of native-born individuals in these artistic occupations. We find that cities that experienced immigrant artist inflows, also see a greater inflow of native artists. [ABSTRACT FROM AUTHOR]