The effect of agglomeration and transport on labour productivity in Saint Petersburg metropolitan area

The Journal of the New Economic Association. 2026. No. 1(70). P. 221–237.

A. I. Salov, E. V. Semerikova

In this paper, we assess the extent of agglomeration externalities that

mirror on labour productivity gains while accounting for the direct and indirect effects

of transportation exposure. To this end we combine data on the local average wage and

employment with comprehensive information on the public transportation and road networks

of the Saint Petersburg Metropolitan Area, one of the most populous agglomerations in Europe.

According to our fi ndings, there is a considerable and noteworthy impact of only transit exposure

measures on local labour productivity, whereas the effect of agglomeration economies on labour

productivity evaporates after the instrumentation technique is applied. Additionally, we reveal

that the inclusion of public transportation exposure measures into estimation results in stealing

the positive effect on labour productivity from private modes in favour of public transit.

Keywords: общественный транспорт, транспортная доступность, public transport, road network, employment density, Agglomeration economies, transport exposure, экономика агломераций, плотность рабочих мест, дорожная сеть

Publication based on the results of: Current Issues of Macroeconomic Dynamics and Macroeconomic Policy in Russia (2025)