Authors: Paul Verstraten, Gerard Verweij, Peter Zwaneveld
Published: February, 2017

This paper argues that the spatial decay function of agglomeration economies is much more complex than is often assumed in the agglomeration literature. We provide insight into this issue by analyzing a nationwide and spatially rich wage panel. The key finding is that wages and urbanization are not significantly related on short distances (<5km), while strongly and positively related on medium distances (5-10km).

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