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Migration and occupational careers: The static and dynamic urban wage premium by education and city size

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  • Martin Korpi
  • William A.V. Clark

Abstract

Using matched employer‐employee full population data on regional migrants in Sweden, this paper addresses the question whether the urban wage premium, and ‘thick’ labour market matching effects, are to be found across all educational groups, and whether the population threshold for these types of effects varies by educational category. Estimating initial wages, average wage level and wage growth 2001‐2009, we find similar wage premiums for all workers in the three largest metropolitan areas, but that there are distinct population thresholds for these type of effects, regardless of educational background. However, job search behaviour as explaining dynamic effects over time seems to pertain mostly to those with higher education. Mediante la utilización de datos de la población completa de correspondencias entre empleador‐empleado sobre migrantes regionales en Suecia, este artículo aborda la cuestión de si la prima salarial urbana y los efectos de correspondencia de un mercado laboral “denso” se encuentran en todos los grupos educativos, y si el umbral de población para estos tipos de efectos varía según la categoría educativa. Mediante la estimación de los salarios iniciales, el nivel salarial medio y el crecimiento salarial entre 2001‐2009, se encontraron primas salariales similares para todos los trabajadores en las tres áreas metropolitanas más grandes, aunque existen distintos umbrales de población para este tipo de efectos, independientemente del nivel educativo. Sin embargo, el comportamiento de búsqueda de empleo como explicación de los efectos dinámicos a lo largo del tiempo parece pertenecer principalmente a quienes tienen una educación superior. 本稿では、スウェーデンの地域内移住に関する、雇用者と被雇用者をマッチングした、全人口のデータを利用して、都市部の賃金プレミアムと充実した労働市場のマッチング効果が、学歴別のすべてのグループにおいて認められるか否か、またこのタイプの効果に対する人口閾値が学歴カテゴリーによって変わるか否かという問題に取り組む。初任給の賃金、平均賃金レベル、2001年~2009年の賃金上昇を推計すると、3つの大都市圏におけるすべての労働者に同等の賃金プレミアムがあることが確認されたが、学歴に関係なく、このタイプの効果に対して明確な人口閾値があることも分かった。ダイナミック効果を経時的に説明するものとしての職務探索行動は、主に高学歴者において認められるようである。

Suggested Citation

  • Martin Korpi & William A.V. Clark, 2019. "Migration and occupational careers: The static and dynamic urban wage premium by education and city size," Papers in Regional Science, Wiley Blackwell, vol. 98(1), pages 555-574, February.
  • Handle: RePEc:bla:presci:v:98:y:2019:i:1:p:555-574
    DOI: 10.1111/pirs.12328
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    Cited by:

    1. Andrea Filippetti & Antonio Zinilli, 2023. "The innovation networks of city-regions in Europe: exclusive clubs or inclusive hubs?," Working Papers 63, Birkbeck Centre for Innovation Management Research, revised 08 Feb 2023.
    2. Eliasson, Kent & Westerlund, Olle, 2019. "Graduate migration, self-selection and urban wage premiums across the regional hierarchy," Umeå Economic Studies 962, Umeå University, Department of Economics.
    3. Yu Wang & Bindong Sun & Sixu Wu & Wan Li & Tinglin Zhang, 2021. "Can the internet reshape the national city size distribution? Cross‐country evidence," Papers in Regional Science, Wiley Blackwell, vol. 100(5), pages 1254-1272, October.
    4. Porcher, Charly & Rubinton, Hannah & Santamaría, Clara, 2023. "JUE insight: The role of establishment size in the city-size earnings premium," Journal of Urban Economics, Elsevier, vol. 136(C).
    5. Alessia Matano, 2022. "Spatial externalities in big cities and duality of the labour market," Journal of Regional Science, Wiley Blackwell, vol. 62(2), pages 471-498, March.
    6. Eliasson, Kent & Haapanen, Mika & Westerlund, Olle, 2019. "Regional concentration of university graduates: The role of high school grades and parental background," Umeå Economic Studies 966, Umeå University, Department of Economics.
    7. Kent Eliasson & Olle Westerlund, 2023. "The urban wage premium and spatial sorting on observed and unobserved ability," Journal of International Economic Law, Oxford University Press, vol. 23(3), pages 601-627.
    8. Kent Eliasson & Olle Westerlund, 2023. "The urban wage premium and spatial sorting on observed and unobserved ability," Journal of Economic Geography, Oxford University Press, vol. 23(3), pages 601-627.
    9. Charly Porcher & Hannah Rubinton & Clara Santamaría, 2020. "The Role of Establishment Size in the City-Size Earnings Premium," Working Papers 2020-029, Federal Reserve Bank of St. Louis, revised 29 Nov 2022.
    10. Yishao Shi & Haoran Ren & Xiatong Guo & Tianhui Tao, 2020. "Implementation and Advancement of a Rural Residential Concentration Strategy in the Suburbs of Shanghai," Land, MDPI, vol. 9(10), pages 1-17, October.
    11. Korpi, Martin & Halvarsson, Daniel, 2023. "City Size, Employer Concentration, and Wage Income Inequality," Ratio Working Papers 363, The Ratio Institute.

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