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The determinants of inter-city and intra-city wage differentials in Korea

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Frame of Image  has been gaining more attention not only in
academic side but also in terms of its social effects. As regional disparity between the capital area and non-capital area has increased, balanced development has been come more into focus. In order to analyze regional disparity across regions and within regions, we need to first identify income levels. However, there was no appropriate measurement to compare regional economies except Gross Regional Domestic Product (GRDP), which deals with the production side. This measure may not reflect individual behavior in choosing their location. Therefore, it is not an appropriate proxy for regional income level. On the other hand, wages, the cost of living, and amenities are the most important factor in choosing resident location according to the Roback model. Therefore, it is necessary to determine the wage level across regions. For that, city boundaries are supposed to be delineated in terms of economic geography, which is different according to administrative district in general. Since metropolitan areas are usually defined by commuting flow, Korean Metropolitan Statistical Areas (MSAs) delineated by Kim et al. (2008)1) has been used here to determine the economic spatial range of cities. This research contributes to regional economic analysis comparing wage
differentials among and within cities in Korea in that this is a first attempt to compare wages across cities. Further, inter-city wage differentials were measured by average wage i


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Title The determinants of inter-city and intra-city wage differentials in Korea
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Material Type Reports
Author(English)

Kim, Dongsoo

Publisher

[Seoul]:Korea Institute for Industrial Economics & Trade

Date 2011
Journal Title; Vol./Issue KIET Industrial Economic Review:vol. 16(no. 3)
Pages 14
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Territorial Development < General
Holding KIET; KDI School

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