Social and Behavioral Sciences Commons^™

Efek Aglomerasi Di Indonesia : Komparasi Jawa Dan Luar Jawa, Eggie Dwi Ananda Chaniago, Muhammad Hanri

Jurnal Kebijakan Ekonomi

Population density and average city’s wages in Java are higher than outside Java. The literature shows that population density can increase the productivity of firms and workers, thereby increasing the level of wages in cities. In urban economics, agglomeration economies are defined as the benefits that come when firms and people locate near one another together in cities and industrial clusters. This study estimates the agglomeration effect in Java and outside Java cities by analyzing the relationship between population density and urban characteristics with wage levels. Previous studies have shown that population density is positively correlated to wage levels at …