Dynamic Benefits of Working in Large Cities: Evidence from Japanese matched employerâ€“employee data
This study estimates wage and labor productivity profiles using a matched employer-employee dataset of the Japanese service industry. Our main concern is to uncover how work experience in large cities helps workers dynamically accumulate human capital, by comparing wage and labor productivity profiles. This study finds that longer work experience in larger cities steepens wage and labor productivity profiles, suggesting that upgrading skills by working in large cities provides dynamic benefits of agglomeration economies. Interestingly, this study finds different growth patterns between wage and labor productivity premiums. Labor productivity grows rapidly with longer work experience in large cities, but the growth of the labor productivity premium stops at about 15-20 years of work experience; in contrast, the wage premium grows gradually until about 35 years of work experience.
|Date of creation:||Mar 2017|
|Contact details of provider:|| Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901|
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- Fr Gonand & Pierre-André Jouvet, 2015. "The," Post-Print hal-01385977, HAL.
- Jorge De La Roca & Diego Puga, 2017.
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- E. D. Gould, 2007. "Cities, Workers, and Wages: A Structural Analysis of the Urban Wage Premium," Review of Economic Studies, Oxford University Press, vol. 74(2), pages 477-506.
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- "Kawaguchi, Daiji" & "Kwon, HyeogUg" & "Shimizutani, Satoshi" & "Fukao, Kyoji" & "Makino, Tatsuji" & "Yokoyama, Izumi" & "Kambayashi, Ryo" & "Kim, YoungGak", 2007. "Are Wage‐tenure Profiles Steeper than Productivity‐tenure Profiles?―Evidence from Japanese Establishment Data from the Census of Manufacturers and the Basic Survey Wage Structure―," Economic Review, Hitotsubashi University, vol. 58(1), pages 61-90, January.
- Masanori Hashimoto, 1990. "The Japanese Labor Market in a Comparative Perspective with the United States," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number jlm. Full references (including those not matched with items on IDEAS)
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