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Education, experience and dynamic urban wage premium

Author Info

Listed author(s):
  • 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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File URL: http://www.svt.ntnu.no/iso/WP/2013/14_edu_JR_FC_HES.pdf
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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
Handle: RePEc:nst:samfok:15213
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Fax: 73 59 69 54
Web page: http://www.svt.ntnu.no/iso/WP/wp.htm
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More information through EDIRC

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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  1. Eaton, Jonathan & Eckstein, Zvi, 1997. "Cities and growth: Theory and evidence from France and Japan," Regional Science and Urban Economics, Elsevier, vol. 27(4-5), pages 443-474, August.
  2. Jesse M. Shapiro, 2006. "Smart Cities: Quality of Life, Productivity, and the Growth Effects of Human Capital," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 324-335, May.
  3. de la Roca, Jorge & Puga, Diego, 2012. "Learning by working in big cities," CEPR Discussion Papers 9243, C.E.P.R. Discussion Papers.
  4. 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.
  5. Lars-Erik Borge & Linn Renée Naper, 2006. "Efficiency Potential and Efficiency Variation in Norwegian Lower Secondary Schools," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 62(2), pages 221-249, June.
  6. Pierre-Philippe Combes & Gilles Duranton & Laurent Gobillon, 2011. "The identification of agglomeration economies," Journal of Economic Geography, Oxford University Press, vol. 11(2), pages 253-266, March.
  7. Nathaniel Baum-Snow & Ronni Pavan, 2012. "Understanding the City Size Wage Gap," Review of Economic Studies, Oxford University Press, vol. 79(1), pages 88-127.
  8. Lee, Sanghoon, 2010. "Ability sorting and consumer city," Journal of Urban Economics, Elsevier, vol. 68(1), pages 20-33, July.
  9. Duncan Black & Vernon Henderson, 2003. "Urban evolution in the USA," Journal of Economic Geography, Oxford University Press, vol. 3(4), pages 343-372, October.
  10. Wheeler, Christopher H, 2001. "Search, Sorting, and Urban Agglomeration," Journal of Labor Economics, University of Chicago Press, vol. 19(4), pages 879-899, October.
  11. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
  12. Jorge De la Roca, 2011. "Selection in initial and return migration: Evidence from moves across Spanish cities," Working Papers 2011-21, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  13. Duncan Black & Vernon Henderson, 2003. "Urban evolution in the USA," Journal of Economic Geography, Oxford University Press, vol. 3(4), pages 343-372, October.
  14. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-342, April.
  15. Diego Puga, 2010. "The Magnitude And Causes Of Agglomeration Economies," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 203-219.
  16. Ahlin, Lina & Andersson, Martin & Thulin, Per, 2013. "Market Thickness and the Early Labor Market Career of University Graduates- An urban advantage?," Papers in Innovation Studies 2013/2, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  17. 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.
  18. Edward L. Glaeser & Matthew G. Resseger, 2010. "The Complementarity Between Cities And Skills," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 221-244.
  19. Rosenthal, Stuart S. & Strange, William C., 2008. "The attenuation of human capital spillovers," Journal of Urban Economics, Elsevier, vol. 64(2), pages 373-389, September.
  20. Liu, Kai & Salvanes, Kjell G. & Sørensen, Erik Ø., 2016. "Good skills in bad times: Cyclical skill mismatch and the long-term effects of graduating in a recession," European Economic Review, Elsevier, vol. 84(C), pages 3-17.
  21. Martin Andersson & Johan Klaesson & Johan P Larsson, 2014. "The sources of the urban wage premium by worker skills: Spatial sorting or agglomeration economies?," Papers in Regional Science, Wiley Blackwell, vol. 93(4), pages 727-747, November.
  22. John V. Winters, 2011. "Why Are Smart Cities Growing? Who Moves And Who Stays," Journal of Regional Science, Wiley Blackwell, vol. 51(2), pages 253-270, 05.
  23. Bacolod, Marigee & Blum, Bernardo S. & Strange, William C., 2009. "Skills in the city," Journal of Urban Economics, Elsevier, vol. 65(2), pages 136-153, March.
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Cited by:

  1. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, Elsevier.
  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. D'Costa, Sabine & Overman, Henry G., 2014. "The urban wage growth premium: Sorting or learning?," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 168-179.
  4. Stefan Leknes, 2014. "Quality of life and population size: Causal evidence with historical mines," Working Paper Series 15714, Department of Economics, Norwegian University of Science and Technology.
  5. Vives Coscojuela, Cecilia, 2016. "Human Capital and Market Size," IKERLANAK Ikerlanak;2016-98, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
  6. 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.
  7. Hildegunn Stokke & Jørn Rattsø, 2015. "National Income Taxation and the Geographic Distribution of Population," ERSA conference papers ersa15p305, European Regional Science Association.

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