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Employment Agglomerations and Spatial Mismatch in the Metropolitan Area of Bogota

Linares Sanchez, Jose (2020): Employment Agglomerations and Spatial Mismatch in the Metropolitan Area of Bogota.

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Abstract

This paper examines the wage premium of being located inside the Central Business Centre (CBD) or employment sub-centres in the metropolitan area of Bogota. Then, following literature on spatial mismatching, analyses potential impacts of agglomerations on social and productive exclusion. The core argument is that socially or productively excluded groups in Bogota do not benefit from positive externalities arising from agglomerations because they face multiple spatial barriers that prevent their effective access. Based on spatial statistics and estimations, I find an elasticity or ‘wage premium’ close to 6% and huge disparities between UPZs and municipalities in the metropolitan area of Bogota. This means, CBD and employment sub-centres in Bogota work as exclusive locations. Consequently, policies should be focused on increasing strategic accessibility through housing, transport, economic development through land-use regulations and institutional arrangements.

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