Journal
SPATIAL ECONOMIC ANALYSIS
Volume 8, Issue 2, Pages 154-175Publisher
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/17421772.2013.774094
Keywords
Spatial wage disparity; new economic geography; natural amenities; Chile; R12; R23
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This paper presents an empirical framework for analysing spatial wage inequality in Chile. Chile is primarily characterized by two stylized facts: the high spatial concentration around the metropolitan area and the key role of natural resources in the country. The paper considers both elements in a competition between NEG (new economic geography) and a theory based on natural resource endowment, with both theories incorporating human capital via a multilevel analysis. The results show the poor performance of NEG for Chile and indicate that natural resources are the principal cause of spatial wage variability in Chile.
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