The relative importance of portable and non-portable agglomeration effects for the urban wage premium

Hanna Frings and Rebecca Kamb

Regional Science and Urban Economics, 2022, vol. 95, issue C

Abstract: Using administrative data for West Germany, we study the relative importance of portable and non-portable agglomeration effects for the urban wage premium. In doing so, we advance the established strategy of estimating wage-tenure profiles for urban-rural and rural-urban movers by adding worker, firm, and match fixed effects. This allows us to distinguish unambiguously between both types of agglomeration effects. Our results show that portable and non-portable agglomeration effects equally contribute to the urban wage premium. Moreover, portable agglomeration effects are not only observed in the biggest cities. Instead, the speed of human capital accumulation continuously increases with city size.

Keywords: Urban wage premium; Agglomeration; Human capital accumulation (search for similar items in EconPapers)
JEL-codes: J31 J60 R23 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:95:y:2022:i:c:s0166046222000175

DOI: 10.1016/j.regsciurbeco.2022.103786

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