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Title: An Empirical Index for Labor Market Density

Citation Type: Journal Article

Publication Year: 2003

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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.

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Authors: Gautier Pieter A., Coen N.Teulings

Periodical (Full): Review of Economics and Statistics

Issue: 4

Volume: 85

Pages: 901-908

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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