Skill wage premium and city size
Edivaldo C. Neves (edivaldo.celestino@usp.br) and
Andre Chagas Carlos R. Azzoni
Authors registered in the RePEc Author Service: André Luis Squarize Chagas and
Carlos Roberto Azzoni
No 2017_19, Working Papers, Department of Economics from University of São Paulo (FEA-USP)
Abstract:
We estimate the urban wage premium for the Brazilian case, exploring how it is heterogeneous for workers/occupations with distinct skills. Every worker/occupation was assigned a level of cognitive, social and motor skills. Using a rich database matching firms and workers, we replicate the wage premium results of other studies. However, we were able to show that the wage premium does not affect equally all occupations/workers. We found a positive association between cognitive and social skills and urban size, especially for workers/occupations that use intensively those skills, and a less intense or non-significant effect for motor skills. Returns to cognitive skills are positive across the whole range or urban sizes, but returns to social skills are only present in large urban agglomerations. Furthermore, interactions of social and cognitive skills inflate the skill wage premium associated with urban size.
Keywords: Urban premium; skills; sorting (search for similar items in EconPapers)
JEL-codes: J24 R23 (search for similar items in EconPapers)
Date: 2017-10-25
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