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Changes in Urban Wages, Jobs, and Workers from 1958-2017

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  • Patrick Bennett
  • Aline Bütikofer
  • Kjell G. Salvanes
  • Darina Steskal

Abstract

We analyze the change in the urban wage premium over the last 60 years. We focus on differences by gender and skill levels, with an emphasis on changes throughout the earnings distribution. We assess the importance of both changing selection into urban areas, as well as the importance of shifts in demand for skills. Both forces explain the dramatic drop in urban premium. Event study analysis reveals that the positive selection into urban mobility declines over time. Among men at the bottom of the distribution, changes in selection are key in accounting for the collapse of the urban wage premium.

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  • Patrick Bennett & Aline Bütikofer & Kjell G. Salvanes & Darina Steskal, 2022. "Changes in Urban Wages, Jobs, and Workers from 1958-2017," CESifo Working Paper Series 9766, CESifo.
    • Handle: RePEc:ces:ceswps:_9766
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    Cited by:

    1. Ager, Philipp & Goñi, Marc & Salvanes, Kjell Gunnar, 2023. "Gender-biased technological change: Milking machines and the exodus of women from farming," Discussion Paper Series in Economics 16/2023, Norwegian School of Economics, Department of Economics.
    2. Galster, George C. & Osland, Liv, 2024. "Educational and gender heterogeneity of the rural-urban earnings premium: New evidence from Norway," Regional Science and Urban Economics, Elsevier, vol. 105(C).

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