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This must be the place: local amenities and superstars’ wages

Author

Listed:
  • Mattia Filomena

    (University of Bergamo)

  • Francesco Principe

    (University of Bergamo
    ECASE (Erasmus Center for Applied Sports Economics))

Abstract

We investigate the role of local amenities in shaping compensating wage differentials in labor market populated by high-skilled workers. Using 10 years of longitudinal data on workers productivity along with information on firms and location amenities, we evaluate whether workers are willing to pay to join a better firm and if firms with undesirable attributes must provide higher wages to attract workers. By accounting for unobserved workers heterogeneity, we show that superstars receive positive wage differentials for lower location amenities as well as riskier employments.

Suggested Citation

  • Mattia Filomena & Francesco Principe, 2025. "This must be the place: local amenities and superstars’ wages," Empirical Economics, Springer, vol. 68(1), pages 213-235, January.
    • Handle: RePEc:spr:empeco:v:68:y:2025:i:1:d:10.1007_s00181-024-02640-w
    DOI: 10.1007/s00181-024-02640-w
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    Keywords

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    JEL classification:

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

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