Does the urban wage premium imply a higher firms’ labor share in big cities?
研究发现制造业企业劳动份额随就业密度增加而小幅上升，但行业间差异显著，源于劳动相对成本密度弹性与资本劳动替代弹性的行业差异，且劳动份额密度弹性越高的企业越不倾向选址于密集区。
I find that on average, the firm-level labor share slightly increases with local employment density in the manufacturing sector, but this relationship is heterogeneous across industries. Through the lens of a theoretical framework featuring a CES production function, I show that this heterogeneity arises because both the density-elasticity of the relative cost of labor (adjusted for productivity) and the elasticity of substitution between capital and labor vary across industries. The magnitude of the effects I find implies that in several industries, agglomeration economies are not Hicks-neutral. Moreover, the higher the density-elasticity of the firms’ labor share, the lower their propensity to locate in denser areas, all else being equal.