type="main" <title type="main">ABSTRACT</title> <p>This paper estimates individual wage equations to test two rival non-nested theories of economic agglomeration, namely New Economic Geography (NEG), as represented by the NEG wage equation and urban economic (UE) theory, in which wages relate to employment density. In the...</p>

This paper tests some of the main hypotheses about the importance of horizontal clusters for the growth of employment in small firms using data from Computing Services in Great Britain. In the main section of the paper, spatial econometric models are estimated controlling for supply- and...

Neoclassical theory assumes diminishing returns to capital and spatially constant exogenously-determined technological progress, although it is questionable whether these are realistic assumptions for modeling manufacturing productivity growth variations across European Union (E.U.) regions. In...

Most "wage curve" studies ignore the geography of local labor markets. However, when a local labor market is in close proximity of other labor markets, a local shock that increases unemployment may not lead to lower pay rates if employers fear outward migration of their workers. Hence, the...