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Education, experience and dynamic urban wage premium

Author Info

  • Fredrik Carlsen

    ()

    (Department of Economics, Norwegian University of Science and Technology)

  • Jorn Rattso

    ()

    (Department of Economics, Norwegian University of Science and Technology)

  • Hildegunn E. Stokke

    ()

    (Department of Economics, Norwegian University of Science and Technology)

Abstract

We analyze static and dynamic agglomeration effects across education groups. The data are based on administrative registers covering all full time workers in the private sector of Norway during 2001-2010, about 6.5 million worker-year observations, including place and sector of work experience since 1993. Accounting for unobservable abilities with identification based on movers, the static urban wage premium is similar across education groups. When the history of work experience in different regions and sectors is included, we show that the dynamic wage premium increases in education level and that highly educated in high wage sectors have the largest learning advantage.

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Paper provided by Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 15213.

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Length: 36 pages
Date of creation: 05 Nov 2013
Date of revision:
Handle: RePEc:nst:samfok:15213
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Keywords: Agglomeration economies; sorting; education; worker experience;

Find related papers by JEL classification:

  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
  • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
  • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
  • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
  • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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  3. Liu, Kai & Salvanes, Kjell G. & Sørensen, Erik Ø., 2012. "Good Skills in Bad Times: Cyclical Skill Mismatch and the Long-term Effects of Graduating in a Recession," Discussion Paper Series in Economics 16/2012, Department of Economics, Norwegian School of Economics.
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  16. Lee, Sanghoon, 2010. "Ability sorting and consumer city," Journal of Urban Economics, Elsevier, vol. 68(1), pages 20-33, July.
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  18. Duncan Black & Vernon Henderson, 2003. "Urban evolution in the USA," Journal of Economic Geography, Oxford University Press, vol. 3(4), pages 343-372, October.
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Cited by:

  1. Combes, Pierre-Philippe & Gobillon, Laurent, 2014. "The Empirics of Agglomeration Economies," IZA Discussion Papers 8508, Institute for the Study of Labor (IZA).
  2. Ana Maria Bonomi Barufi, 2016. "Should I Stay Or Should I Go? Dynamic Agglomeration Economies In Brazil," Anais do XLIII Encontro Nacional de Economia [Proceedings of the 43rd Brazilian Economics Meeting] 164, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  3. Sabine D'Costa & Henry G. Overman, 2013. "The Urban Wage Growth Premium: Sorting or Learning?," SERC Discussion Papers 0135, Spatial Economics Research Centre, LSE.
  4. Hildegunn Stokke & Jørn Rattsø, 2015. "National Income Taxation and the Geographic Distribution of Population," ERSA conference papers ersa15p305, European Regional Science Association.
  5. Jørn Rattsø & Hildegunn E Stokke, 2015. "Handling amenities in income taxation: Analysis of tax distortions in a migration equilibrium model," Working Paper Series 16315, Department of Economics, Norwegian University of Science and Technology.

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