Article ID Journal Published Year Pages File Type
7370976 Journal of Urban Economics 2018 67 Pages PDF
Abstract
This paper documents the negative relationship between the age of cities and their average wages in Russia and a number of post-Soviet countries. To determine age-related urban characteristics responsible for this relationship, we develop a spatial equilibrium model as a framework to guide the interpretation of the regression estimates. Higher real wages in newer cities reflect both their disadvantages as places for living and their production advantages. The latter are related to their production amenities, higher shares of skilled workers, and more available natural resources. These advantages and disadvantages tend to disappear over time, which gives rise to income convergence.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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