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In Search of Better Opportunities : Sorting and Agglomeration Effects among Young College Graduates in Colombia

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  • Bacolod,Marigee
  • De la Roca,Jorge
  • Ferreyra,Maria Marta

Abstract

This paper studies the dynamic sorting of workers prior to labor market entry that leads toskill differences across cities of different sizes, as well as its consequences on the estimation of agglomerationeffects. Using rich administrative data for young, college-educated workers in Colombia, the paper shows thatthe most talented and best trained sort to big cities primarily because they attend college there and remain forwork. The availability of colleges in an individual's high school city, parental resources, and high school citysize are the most important determinants of the decision to move for college. The relatively less able remain in mediumand small cities or move there for work after attending college in big cities. Pre-labor market sorting thusconcentrates population and skill in big cities. As a result of this sorting, agglomeration effects are stronger forcollege than work city size, even after controlling for mediating factors such as individual ability or college selectivity.

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  • Bacolod,Marigee & De la Roca,Jorge & Ferreyra,Maria Marta, 2020. "In Search of Better Opportunities : Sorting and Agglomeration Effects among Young College Graduates in Colombia," Policy Research Working Paper Series 9433, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9433
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    Cited by:

    1. Jiantao Zhou & Eddie Chi-Man Hui & Huiwen Peng, 2022. "Chasing opportunity? Inequality of opportunity and educational self-selection of interprovincial migrants in China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(2), pages 281-309, October.
    2. Jiantao Zhou & Eddie Chi‐Man Hui, 2022. "The hukou system and selective internal migration in China," Papers in Regional Science, Wiley Blackwell, vol. 101(2), pages 461-482, April.
    3. Gómez-Lobo, Andrés & Sánchez González, Santiago & González Mejia, Vileydy & Calatayud, Agustina, 2022. "Agglomeration and Congestion in Latin America," IDB Publications (Working Papers) 11952, Inter-American Development Bank.
    4. Zhenshan Yang, 2023. "Human capital space: a spatial perspective of the dynamics of people and economic relationships," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    5. Frings, Hanna & Kamb, Rebecca, 2022. "The relative importance of portable and non-portable agglomeration effects for the urban wage premium," Regional Science and Urban Economics, Elsevier, vol. 95(C).
    6. Ahlfeldt, Gabriel M. & Gobillon, Laurent, 2021. "Introduction to the Special issue: “Emerging Trends in Urban Economics”," Regional Science and Urban Economics, Elsevier, vol. 90(C).

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    More about this item

    Keywords

    Educational Sciences; Rural Labor Markets; Tertiary Education; Labor Markets;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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