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| Type | Working Paper |
| Scope | Discipline-based scholarship |
| Title | Urban wage premia and heterogeneous sorting |
| Organization Unit | |
| Authors |
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| Language |
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| Institution | University of Zurich |
| Series Name | URPP Equality of Opportunity Discussion Paper Series |
| Number | 7 |
| Number of Pages | 32 |
| Date | 2022 |
| Abstract Text | Wages are higher in urban regions. These urban wage premia may be driven by sorting of more productive workers into urban regions, by a static productivity advantage, and by higher wage growth. This paper documents a size-earnings elasticity of five per cent in Germany. Sorting of more productive workers into larger regions explains 40 per cent of this elasticity. The remainder is driven in equal parts by a static productivity effect and a dynamic learning effect. The urban wage premium is strongly increasing in educational attainment. This is largely driven by different degrees of sorting between education groups. Similarly, there are large urban wage premium differences between occupation groups, which are entirely driven by differences in sorting. |
| Official URL | https://www.urpp-equality.uzh.ch/dam/jcr:06d6b5a7-6675-4931-86c7-20aac7c7b0d0/7_JL_urbanpremia.pdf |
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| Other Identification Number | merlin-id:23265 |
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