Economic Remoteness and Wage Disparities in Romania

Bibliographic Data

ID10834243
AuthorsJesús López‐Rodríguez (0000-0002-2142-3913, Yahoo (United Kingdom), corresponding author), Andrés Faíña (0000-0003-2323-7521, Yahoo (United Kingdom), corresponding author), BOLEA COSMIN‐GABRIEL (Universidade da Coruña, corresponding author)
Year2011
Volume102
Issue5
Pages594-606
Publication date2011-12-01
Open AccessYes
TypeARTICLE
VenueTijdschrift voor Economische en Sociale Geografie (JOURNAL)
Journal identifiersISSN: 0040-747X • E-ISSN: 1467-9663
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1467-9663.2011.00670.x
OpenAlexW1482306414
LanguageEN
Citations received4
References cited19

This paper looks at the link between wage disparities and market access for the Romanian regions. First, we derive an econometric specification which relates the income levels of a particular location with a weighted sum of the volume of economic activities of the surrounding locations (market access). Then, empirically, we estimate this econometric specification for a sample of 42 Romanian regions in the year 2006. The results show that market access is statistically significant and quantitatively important in explaining cross‐county variation in Romanian wages. Moreover, our results are robust to the inclusion of control variables thought to be important in explaining Romanian wages as it is the case with human capital and innovation levels. After controlling for these variables, market access remains still positive and statistically significant although its influence on wages decreases around 25 per cent. Finally some policy conclusions are also drawn

Demographic economics · Econometric model · Econometrics · Economic growth · Economics · Geography · Human capital · Inclusion (mineral · Labour economics · Market access · Romanian · Sample (material · Wage · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Regional Economics and Spatial Analysis

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