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Migration, Careers and the Urban Wage Premium: Does Human Capital Matter?

Author

Listed:
  • Korpi, Martin

    (The Ratio institute)

  • Clark, William A.V.

    (California Center for Population Research, UCLA)

Abstract

Using detailed Swedish full population data on regional migrants, this paper addresses the question of whether the urban wage premium, and “thick” labor market matching effects, are found only among the higher educated or across all educational groups, and whether the urban population threshold for these type of effects varies by educational category. Estimating initial wages, average wage level and wage growth 2001-2009, we find similar matching effects for all educational groups in the three largest metropolitan areas, but very weak effects for cities ranked 4th - 6th in the urban hierarchy. Our findings suggest that positive urban matching effects are not limited to those with higher education, but that there are distinct population thresholds for these type of effects, regardless of educational background.

Suggested Citation

  • Korpi, Martin & Clark, William A.V., 2015. "Migration, Careers and the Urban Wage Premium: Does Human Capital Matter?," Ratio Working Papers 256, The Ratio Institute.
  • Handle: RePEc:hhs:ratioi:0256
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    More about this item

    Keywords

    Human capital; urban wage premium; domestic migration; market thickness; mobility; agglomeration economies;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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