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Title: An empirical measure for labour market density

Citation Type: Working Paper

Publication Year: 2000

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Abstract: In this paper we derive a structural measure for labor market density based on the Ellison and Glaeser (1997) index for industry concentration. This labor market density measure serves as a proxy for the number of workers that is potentially available for jobs in a particular area. The measure 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 measure to a standard wage equation and find that it explains almost half of the cross- region-wage-variance.

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Authors: Gutier, P.A.; Teulings, C.N.

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Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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