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Local labor market size and qualification mismatch

Author

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  • Francesco Berlingieri

Abstract

This paper investigates the effect of the size of the local labor market on skill mismatch. Using survey data for Germany, I find that workers in large cities are both less likely to be overqualified for their job and to work in a different field than the one for which they trained. Different empirical strategies are employed to account for the potential sorting of talented workers into more urbanized areas. Results on individuals who have never moved away from the place in which they grew up and fixed effects estimates obtaining identification through regional migrants suggest that sorting does not fully explain the existing differences in qualification mismatch across areas. This provides evidence of the existence of agglomeration economies through better matches. However, lower qualification mismatch in larger cities is found to explain at best a small part of the urban wage premium.

Suggested Citation

  • Francesco Berlingieri, 2019. "Local labor market size and qualification mismatch," Journal of Economic Geography, Oxford University Press, vol. 19(6), pages 1261-1286.
    • Handle: RePEc:oup:jecgeo:v:19:y:2019:i:6:p:1261-1286.
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    File URL: http://hdl.handle.net/10.1093/jeg/lby045
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    Cited by:

    1. Koster, Hans R.A. & Ozgen, Ceren, 2021. "Cities and tasks," Journal of Urban Economics, Elsevier, vol. 126(C).
    2. Ömer Şahin, 2021. "Regional Analysis of Skills-Mismatch in Turkish Labor Markets," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 8(1), pages 1-27, January.
    3. Eloiza Almeida & Veneziano Araújo & Solange Gonçalves, 2025. "The urban wage premium in a labor market with informality," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(2), pages 1-28, June.
    4. Yoann Morin & Lionel Védrine, 2022. "Do agglomeration economies affect firms’ returns to training? Evidence based on French industrial firms," Papers in Regional Science, Wiley Blackwell, vol. 101(5), pages 1135-1156, October.
    5. Nurina Paramitasari & Khoirunurrofik Khoirunurrofik & Benedictus Raksaka Mahi & Djoni Hartono, 2024. "Charting vocational education: impact of agglomeration economies on job–education mismatch in Indonesia," Asia-Pacific Journal of Regional Science, Springer, vol. 8(2), pages 461-491, June.

    More about this item

    Keywords

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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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