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Changes during the 1990's in the location of Swedish Power Couples: Consequences and Explanations

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  • Isacsson, Gunnar

    ()
    (National Road and Transportation Research Institute)

  • Regnér, Håkan

    ()
    (The Swedish Confederation of Professional Associations)

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    Abstract

    Between 1990 and 1998 there was an increase by 4 percentage points of couples where both individuals were college educated, so-called power couples, in Swedish cities. During the same period, the shares of non-college educated couples and college educated singles increased by only 1 percentage point, respectively. The study argues that the observed trends are explained neither by the co-location hypothesis nor the marriage market hypothesis. Instead it seems that the differential household trends in city location coincide with differential trends in the city earnings premium. The city earnings premium has increased during the 1990´s particularly for college educated men and women in couples.

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    Bibliographic Info

    Paper provided by Swedish Institute for Social Research in its series Working Paper Series with number 1/2007.

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    Length: 39 pages
    Date of creation: 12 Feb 2007
    Date of revision:
    Handle: RePEc:hhs:sofiwp:2007_001

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    Keywords: City earnings premiums; power couples; location;

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    1. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November.
    2. Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212.
    3. Mellander, Erik, 1999. "The multi-dimensional nature of labor demand and skill-biased technical change," Working Paper Series 1999:9, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    4. Janice Compton & Robert A. Pollak, 2007. "Why Are Power Couples Increasingly Concentrated in Large Metropolitan Areas?," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 475-512.
    5. Antonio Ciccone & Giovanni Peri, 2006. "Identifying Human-Capital Externalities: Theory with Applications," Review of Economic Studies, Oxford University Press, vol. 73(2), pages 381-412.
    6. Edward L. Glaeser & David C. Mare, 1994. "Cities and Skills," NBER Working Papers 4728, National Bureau of Economic Research, Inc.
    7. Berman, Eli & Bound, John & Griliches, Zvi, 1994. "Changes in the Demand for Skilled Labor within U.S. Manufacturing: Evidence from the Annual Survey of Manufactures," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 367-97, May.
    8. Daron Acemoglu & Joshua Angrist, 2001. "How Large are Human-Capital Externalities? Evidence from Compulsory-Schooling Laws," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 9-74 National Bureau of Economic Research, Inc.
    9. Isacsson, Gunnar, 2005. "External effects of education on earnings: Swedish evidence using matched employee-establishment data," Working Paper Series 2005:10, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    10. Mellander, Erik, 1999. "The Multi-Dimensional Nature of Labor Demand and Skill-Biased Technical Change," Working Paper Series 518, Research Institute of Industrial Economics, revised 08 Dec 1999.
    11. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June.
    12. repec:fth:stanho:e-94-11 is not listed on IDEAS
    13. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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