Market Thickness and the Early Labor Market Career of University Graduates- An urban advantage?
AbstractWe analyze the influence of market thickness for skills on initial wages and subsequent wage development of university graduates. Using Swedish micro-level panel data on a cohort of graduates, we show that two out of three graduates move to large cities upon graduation. Large cities yield higher rewards to human capital and a stronger early job market career. The premium on initial wages for urban graduates is in the interval of 6-12 percent, and we estimate a wage-growth premium of about 3 percent. Thicker markets for skills appear as a key reason for the concentration of university graduates to larger cities.
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Bibliographic InfoPaper provided by Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy in its series Papers in Innovation Studies with number 2013/2.
Length: 32 pages
Date of creation: 14 Feb 2013
Date of revision:
human capital; university graduates; urban wage premium; market thickness; matching; agglomeration economies; migration; job switching;
Find related papers by 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)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-06 (All new papers)
- NEP-HRM-2013-04-06 (Human Capital & Human Resource Management)
- NEP-LAB-2013-04-06 (Labour Economics)
- NEP-LMA-2013-04-06 (Labor Markets - Supply, Demand, & Wages)
- NEP-MIG-2013-04-06 (Economics of Human Migration)
- NEP-URE-2013-04-06 (Urban & Real Estate Economics)
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- Andersson, Martin & Henrekson, Magnus, 2014.
"Local Competitiveness fostered through Local Institutions for Entrepreneurship,"
CIRCLE Electronic Working Papers
2014/4, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
- Andersson, Martin & Henrekson, Magnus, 2014. "Local Competiveness Fostered through Local Institutions for Entrepreneurship," Working Paper Series 1020, Research Institute of Industrial Economics.
- Fredrik Carlsen & Jorn Rattso & Hildegunn E. Stokke, 2013. "Education, experience and dynamic urban wage premium," Working Paper Series 15213, Department of Economics, Norwegian University of Science and Technology.
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