Journal
JOURNAL OF REGIONAL SCIENCE
Volume 56, Issue 4, Pages 596-614Publisher
WILEY
DOI: 10.1111/jors.12269
Keywords
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Funding
- Chilean Fondecyt Understanding income inequality persistency and its spatial dimension in Chile [11121247]
- Chilean Science Funding CONICYT Apoyo a la Formacion de Redes Internacionales entre Centros de Investigacion [Redes 12-0047]
- Territorial Cohesion for Development Program of Rimisp-Latin American Center for Rural Development
- International Development Research Centre (IDRC, Canada)
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In this paper, we estimate the size of the wage premium necessary to compensate for remoteness incurred by workers compared to the city size productivity effects. We construct five urban hierarchy tiers for cities in Chile based on their level of remoteness from the urban system. We then contrast the effect generated by these variables on worker wages. We report a positive gradient of wages the higher the size of the urban tier and a loss in wages that can reach 35 percent for more remote cities.
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