Attenuation of agglomeration economies in Brazil
DOI:
https://doi.org/10.1590/1980-53575445edrKeywords:
Economics of agglomeration, Attenuation, Industrial location, Metropolitan regions, WagesAbstract
This paper examines the spatial extent of employment agglomeration effects on individual wages within Brazil’s metropolitan regions. Utilizing georeferenced microdata from the RAIS database, we were able to pinpoint the exact locations of establishments, thereby defining micro spatial units for intra-urban analysis based on exogenous criteria. To isolate the impacts of employment agglomeration, our econometric model employs instrumental variables alongside a comprehensive set of worker, establishment, and employment location characteristics. The findings indicate that the positive externalities of agglomeration on individual wages are geographically limited, with significant effects predominantly observed within a spatial radius of up to 1 km.
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Atualizado em 14/08/2025