Quotation Fichet de Clairfontaine, Aurélien, Hammer, Christoph. 2017. Is the Wage Equation Spatial Enough?: Evidence from a novel regional trade dataset. Review of International Economics, 26 (3), 610-633.




This study focuses on the market accessibility of European regions and its relationship to income per capita, summarized in the new economic geography (NEG) “wage equation”. In a first step, we make use of a novel dataset of bilateral trade flows for 254 European nomenclature of territorial units for statistics (NUTS-2) regions (for 26 European countries excluding Bulgaria and Romania) in order to estimate trade costs and ultimately construct a regional measure of access to markets. In a second step, we test the hypothesis that access to domestic as well as to foreign markets increases income per capita. We find that, in spite of its spatial formulation, the wage equation is not able to capture local spatial patterns of the distribution of European regional income per capita.


Press 'enter' for creating the tag

Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Review of International Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-C
Language English
Title Is the Wage Equation Spatial Enough?: Evidence from a novel regional trade dataset
Volume 26
Number 3
Year 2017
Page from 610
Page to 633
Reviewed? Y
URL https://onlinelibrary.wiley.com/doi/abs/10.1111/roie.12315
DOI http://dx.doi.org/10.1111/roie.12315
Open Access N
JEL F12, F14, R12


Fichet de Clairfontaine, Aurélien (Former researcher)
Hammer, Christoph (Details)
Department of Economics (Badinger) (Details)
Department of Economics (Kubin) (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
1807 Economic geography (Details)
5335 Political economic theory (Details)
5618 Regional economy (Details)
Google Scholar: Search