Education, mobility and the college wage premium

Damba Lkhagvasuren

European Economic Review, 2014, vol. 67, issue C, 159-173

Abstract: Motivated by large educational differences in geographic mobility, this paper considers a simple dynamic extension of Roy׳s (1951) model and analyzes it using new evidence on net versus excess mobility and the individual-level relationship between mobility and wages. According to the model, the dispersion of a labor income shock specific to a worker-location match is greater for more educated workers and accounts for large educational differences in mobility. In the model, labor mobility raises both the average wage and the college wage premium, a prediction consistent with differences between Europe and the U.S.

Keywords: A dynamic Roy model; A labor income shock; Spatial mismatch; Moving cost; Excess versus net mobility (search for similar items in EconPapers)
JEL-codes: E24 I24 J31 J61 R23 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014292114000130
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Education, Mobility and the College Wage Premium (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:67:y:2014:i:c:p:159-173

DOI: 10.1016/j.euroecorev.2014.01.011

Access Statistics for this article

European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().