In this paper, we test empirically for the increasing returns-based agglomeration and investigate the impact of the economic integration with the European Union on regional wage inequalities in Poland. In our study, we use the wage data for 16 Polish regions over the period of 1995-2009. Our results are consistent with the predictions of the core-periphery models of the New Economic Geography. In particular, we find that wages decrease as one moves away from the Mazowiecki capital region, as well as from the border with Germany.
Services Sectors' Concentration: The European Union, Greece, and the New Economic Geography
