چکیده:
The purpose of this study is to investigate the factors affecting the manufacturing industry wage among selected developing countries based on new economic geography theory. More specifically, we use a panel data model to study the spatial structure of wages in 136 countries for the period 1998-2007. The results indicate that this theory provides a good description of the spatial structure of wages. We find that the market size and the distance-weighted have positive relationships with wage. However, the price of non-tradable goods has a negative effect on the spatial structure of wages. The result shows that the conditions governing the labor market is more important in explaining wage inequalities than the characteristics of labor or labor productivity.
خلاصه ماشینی:
"We examine whether there is a relationship between economic geography characteristics such as size of market, prices of non-traded goods and transportation costs and wages in developing countries.
Helpman, s (1998) final equation of the spatial structure of wages is as follows: (2) Where, the main variables of the model are market size (y j), wage of other regions (y j), the non-traded goods price (qj) and transportation costs (dij) among the regions.
The Puga (1999) model of the spatial structure of wages is as follows: (3) Where, yj, Ij and Tij indicate market size, the price index of manufactured goods and transportation costs between the regions, respectively.
In order to test empirically the factors affecting on industrial wages' gap in the selected developing countries, we have employed a panel data model as follows: (4) Variables in this equation, defined between two countries r and s, are; relative difference in real wages (), relative difference in market size (), relative difference in weighted distance (), relative difference in non-traded goods price (), relative difference in productivity (), relative difference in openness index ().
Table 3: GLS Panel Model Estimation Results of the Spatial Structure of Wages in Selected Developing Countries during Period 1998-2007 Variables Fix Effects Random Effects Coefficient t-Statistic Prob.
5. Conclusions The main purpose of this study is to investigate the factors affecting the manufacturing industry wage among the selected developing countries by using the new economic geography model."