An empiriacal index for labour market density

P.A. Gautier; C.N. Teulings

doi:10.1162/003465303772815808

An empiriacal index for labour market density

P.A. Gautier
, C.N. Teulings

Economics

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Abstract

We derive a structural index for labor market density based on the Ellison-Glaeser index for industry concentration. The labor market density index serves as a proxy for the number of workers that are potentially available for jobs in a particular area. The index is based on observed home-work location patterns. It is particularly useful for testing theories where the scale of the market matters. We apply this index to a standard wage equation and find that it explains almost half of the cross-region wage variance.

Original language	English
Pages (from-to)	901-908
Journal	Review of Economics and Statistics
Volume	85
Issue number	4
DOIs	https://doi.org/10.1162/003465303772815808
Publication status	Published - 2003

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SDG 8 Decent Work and Economic Growth

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10.1162/003465303772815808

Empirical index

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An empiriacal index for labour market density

Abstract

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