's equilibrium implies that positive attributes in one location, like access to downtown or high wages, are offset by negative … attributes, like high housing prices. The employer's equilibrium requires that high wages be offset by a high level of … justify high wages is the basis for the study of agglomeration economies which has been a significant branch of urban …

urban areas may generate productivity advantages that result in higher wages. City size has an important impact on the … relative bargaining power of workers and firms in the labour market. When analysing the relationship of local wages and the …