By exploiting the Roback model, we analyze the impact of agglomeration on both production and consumption. We postulate that the evaluation of urban amenities may vary across skill-groups. Empirically, we use the Bank of Italy’s SHIW dataset, and find evidence of a substantial urban rent premium, while we do not find support for an urban wage premium. We conclude that urban agglomeration is predominantly a source of positive amenities for residents and, in particular, highly-educated individuals seem to care about the welfare effects of agglomeration more than their less-educated counterparts. Survey results also suggest that urban skilled workers benefit from jobs of higher quality, and from shopping possibilities and cultural consumption opportunities, such as cinemas, theaters, and museums.

Dalmazzo, A., DE BLASIO, G. (2011). Amenities and skill-biased agglomeration effects: some results on Italian cities. PAPERS IN REGIONAL SCIENCE, 90(3), 503-527 [10.1111/j.1435-5957.2010.00327.x].

Amenities and skill-biased agglomeration effects: some results on Italian cities

DALMAZZO, ALBERTO;
2011-01-01

Abstract

By exploiting the Roback model, we analyze the impact of agglomeration on both production and consumption. We postulate that the evaluation of urban amenities may vary across skill-groups. Empirically, we use the Bank of Italy’s SHIW dataset, and find evidence of a substantial urban rent premium, while we do not find support for an urban wage premium. We conclude that urban agglomeration is predominantly a source of positive amenities for residents and, in particular, highly-educated individuals seem to care about the welfare effects of agglomeration more than their less-educated counterparts. Survey results also suggest that urban skilled workers benefit from jobs of higher quality, and from shopping possibilities and cultural consumption opportunities, such as cinemas, theaters, and museums.
2011
Dalmazzo, A., DE BLASIO, G. (2011). Amenities and skill-biased agglomeration effects: some results on Italian cities. PAPERS IN REGIONAL SCIENCE, 90(3), 503-527 [10.1111/j.1435-5957.2010.00327.x].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11365/24877
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