Can Neg Explain the Spatial Distribution of Wages of Chile?

The new economic geography (NEG) has been tested to explain the spatial concentration of wages in developed countries, but it has not been evaluated for developing countries where the excessive spatial concentration seems to be related with negative consequences on the economic development. This paper covers this gap in the literature estimating by first time a NEG model for a developing country such as Chile, pursuing two research question: (1) Can the NEG explain the spatial distribution of wages in a developing country as Chile?; and (2) How can the NEG be used to infer information about th... Mehr ...