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Does the urban wage premium differ by pre-employment status?

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  • Silke Hamann
  • Annekatrin Niebuhr
  • Jan Cornelius Peters

Abstract

This paper investigates whether the density of local labour markets in Germany impacts on the wage of new employment relationships and whether corresponding urbanization economies differ significantly across distinct types of transitions to employment. The results suggest rather small static urbanization benefits. Doubling employment density increases the wage of new employment relationships by 1.0–2.6%. Moreover, benefits seem to accrue only to persons experiencing job-to-job transitions and the short-term unemployed, but not to the long-term unemployed. It is supposed these differences point to matching advantages in large urban labour markets from which only some job seekers benefit.

Suggested Citation

  • Silke Hamann & Annekatrin Niebuhr & Jan Cornelius Peters, 2019. "Does the urban wage premium differ by pre-employment status?," Regional Studies, Taylor & Francis Journals, vol. 53(10), pages 1435-1446, October.
    • Handle: RePEc:taf:regstd:v:53:y:2019:i:10:p:1435-1446
    DOI: 10.1080/00343404.2019.1577553
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    Cited by:

    1. Moritz Meister & Annekatrin Niebuhr & Jan Cornelius Peters & Johannes Stiller, 2023. "Local attributes and migration balance – evidence for different age and skill groups from a machine learning approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(4), pages 794-825, May.
    2. Eloiza Regina Ferreira de Almeida & Veneziano C. Araujo & Solange Gonçalves, 2024. "Urban wage premium in a labor market with informality," Working Papers, Department of Economics 2024_25, University of São Paulo (FEA-USP), revised 14 Nov 2024.

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