Agglomeration and job matching among college graduates
We study one potential source of urban agglomeration economies: better job matching. Focusing on college graduates, we construct two direct measures of job matching based on how well an individual’s job corresponds to his or her college education. Consistent with matching-based theories of urban agglomeration, we find evidence that larger and thicker local labor markets help college graduates find better jobs by increasing both the likelihood and quality of a match. We then assess the extent to which better job matching of college-educated workers increases individual-level wages and thereby contributes to the urban wage premium. While we find that college graduates with better job matches do indeed earn higher wages on average, the contribution of such job matching to aggregate urban productivity appears to be relatively modest.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.newyorkfed.org/
More information through EDIRC
|Order Information:|| Web: http://www.ny.frb.org/rmaghome/staff_rp/ Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Di Addario, Sabrina, 2011.
"Job search in thick markets,"
Journal of Urban Economics,
Elsevier, vol. 69(3), pages 303-318, May.
- Segal, David, 1976. "Are There Returns to Scale in City Size?," The Review of Economics and Statistics, MIT Press, vol. 58(3), pages 339-50, August.
- Robst, John, 2007. "Education and job match: The relatedness of college major and work," Economics of Education Review, Elsevier, vol. 26(4), pages 397-407, August.
- Marshall, Alfred, 1890.
"The Principles of Economics,"
History of Economic Thought Books,
McMaster University Archive for the History of Economic Thought, number marshall1890.
- Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2008.
"Spatial wage disparities: Sorting matters!,"
Journal of Urban Economics,
Elsevier, vol. 63(2), pages 723-742, March.
- Dora L. Costa & Matthew E. Kahn, 1999.
"Power Couples: Changes in the Locational Choice of the College Educated, 1940-1990,"
NBER Working Papers
7109, National Bureau of Economic Research, Inc.
- Dora L. Costa & Matthew E. Kahn, 2000. "Power Couples: Changes In The Locational Choice Of The College Educated, 1940-1990," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1287-1315, November.
- Bleakley, Hoyt & Lin, Jeffrey, 2012.
"Thick-market effects and churning in the labor market: Evidence from US cities,"
Journal of Urban Economics,
Elsevier, vol. 72(2), pages 87-103.
- Hoyt Bleakley & Jeffrey Lin, 2007. "Thick-market effects and churning in the labor market: evidence from U.S. cities," Working Papers 07-23, Federal Reserve Bank of Philadelphia.
- Christopher H. Wheeler, 2006.
"Local Market Scale and the Pattern of Job Changes Among Young Men,"
Upjohn Working Papers and Journal Articles
06-131, W.E. Upjohn Institute for Employment Research.
- Wheeler, Christopher H., 2008. "Local market scale and the pattern of job changes among young men," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 101-118, March.
- Christopher H. Wheeler, 2007. "Local market scale and the pattern of job changes among young men," Working Papers 2005-033, Federal Reserve Bank of St. Louis.
- Helsley, Robert W. & Strange, William C., 1990. "Matching and agglomeration economies in a system of cities," Regional Science and Urban Economics, Elsevier, vol. 20(2), pages 189-212, September.
- Jeffrey Yankow, 2009. "Some Empirical Evidence of the Efficacy of Job Matching in Urban Labor Markets," International Advances in Economic Research, International Atlantic Economic Society, vol. 15(2), pages 233-244, May.
- Sato, Yasuhiro, 2001. "Labor Heterogeneity in an Urban Labor Market," Journal of Urban Economics, Elsevier, vol. 50(2), pages 313-337, September.
- Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon & Sébastien Roux, 2010.
"Estimating Agglomeration Economies with History, Geology, and Worker Effects,"
in: Agglomeration Economics, pages 15-66
National Bureau of Economic Research, Inc.
- Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon & Sébastien Roux, 2008. "Estimating Agglomeration Economies With History, Geology, And Worker Effects," Working Papers halshs-00347451, HAL.
- Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon & Sébastien Roux, 2008. "Estimating Agglomeration Economies with History, Geology and Worker Effects," Working Papers 2008-22, Centre de Recherche en Economie et Statistique.
- Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent & Roux, Sébastien, 2008. "Estimating Agglomeration Economies with History, Geology, and Worker Effects," CEPR Discussion Papers 6728, C.E.P.R. Discussion Papers.
- Diego Puga, 2010.
"The Magnitude And Causes Of Agglomeration Economies,"
Journal of Regional Science,
Wiley Blackwell, vol. 50(1), pages 203-219.
- Diego Puga, 2009. "The magnitude and causes of agglomeration economies," Working Papers 2009-09, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
- Jaison R. Abel & Ishita Dey & Todd M. Gabe, 2010.
"Productivity and the density of human capital,"
2010/30, Institut d'Economia de Barcelona (IEB).
- Sveikauskas, Leo A, 1975. "The Productivity of Cities," The Quarterly Journal of Economics, MIT Press, vol. 89(3), pages 393-413, August.
- Baumgardner, James R, 1988. "Physicians' Services and the Division of Labor across Local Markets," Journal of Political Economy, University of Chicago Press, vol. 96(5), pages 948-82, October.
When requesting a correction, please mention this item's handle: RePEc:fip:fednsr:587. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amy Farber)
If references are entirely missing, you can add them using this form.