 Local labor market size and qualification mismatchJournal of Economic Geography, 2019, vol. 19, issue 6, 1261-1286 Abstract: This paper investigates the effect of the size of the local labor market on skill mismatch. Using survey data for Germany, I find that workers in large cities are both less likely to be overqualified for their job and to work in a different field than the one for which they trained. Different empirical strategies are employed to account for the potential sorting of talented workers into more urbanized areas. Results on individuals who have never moved away from the place in which they grew up and fixed effects estimates obtaining identification through regional migrants suggest that sorting does not fully explain the existing differences in qualification mismatch across areas. This provides evidence of the existence of agglomeration economies through better matches. However, lower qualification mismatch in larger cities is found to explain at best a small part of the urban wage premium. Keywords: Agglomeration; labor matching; qualification mismatch; urban wage premium (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:jecgeo:v:19:y:2019:i:6:p:1261-1286. Ordering information: This journal article can be ordered from Access Statistics for this article Journal of Economic Geography is currently edited by Jorge De la Roca, Stephen Gibbons, Simona Iammarino, Amanda Ross and James Faulconbridge More articles in Journal of Economic Geography from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. |
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