The nexus between spatial structure and labour income: evidence from Vietnam

Studies on spatial structure features and their influence are increasingly receiving great attention from scholars and policymakers as they play an essential role in any geographical area's planning and economic development. Therefore, this study analyses the specific impact of spatial structure on labour income in a typical case in Vietnam. Using instrumental variables combined with two-stage least squares regression analysis (TSLS), the results from the study show the specific effects of spatial structure on labour income. Urbanization externalities are reflected in the size of the urban population, which positively impacts the labour income in the region. In contrast, the population dispersion in the decentralized model brings negative impacts. Besides, when the spatial structure of localities tends to be highly polycentric, it will have a negative impact on labour income; however, this effect is dominated by the size of the urban population.

Automated summary

Studies on the spatial structure and its impact have gained increasing attention due to their crucial role in the planning and economic development of geographical areas. This study specifically analyzes the influence of spatial structure on labor income in a typical Vietnamese case. Employing instrumental variables and two-stage least squares regression analysis (TSLS), the findings reveal the specific effects of spatial structure on labor income. Urbanization externalities are manifested in the size of the urban population, positively influencing labor income in the region. Conversely, population dispersion in the decentralized model has negative impacts. Additionally, a highly polycentric spatial structure has a negative impact on labor income, dominated by the size of the urban population.