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Market Thickness and the Early Labor Market Career of University Graduates- An urban advantage?

  • Ahlin, Lina

    ()

    (CIRCLE, Lund University)

  • Andersson, Martin

    ()

    (CIRCLE, Lund University)

  • Thulin, Per

    ()

    (Royal Institute of Technology and Swedish Entrepreneurship Forum)

We analyze the influence of market thickness for skills on initial wages and subsequent wage development of university graduates. Using Swedish micro-level panel data on a cohort of graduates, we show that two out of three graduates move to large cities upon graduation. Large cities yield higher rewards to human capital and a stronger early job market career. The premium on initial wages for urban graduates is in the interval of 6-12 percent, and we estimate a wage-growth premium of about 3 percent. Thicker markets for skills appear as a key reason for the concentration of university graduates to larger cities.

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Paper provided by Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy in its series Papers in Innovation Studies with number 2013/2.

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Length: 32 pages
Date of creation: 14 Feb 2013
Date of revision:
Handle: RePEc:hhs:lucirc:2013_002
Contact details of provider: Postal: CIRCLE, Lund University, PO Box 117, SE-22100 Lund, Sweden
Phone: +46 (0) 46 222 74 68
Web page: http://www.circle.lu.se/

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