This must be the place: local amenities and superstars’ wages

Mattia Filomena () and Francesco Principe ()
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Mattia Filomena: University of Bergamo
Francesco Principe: University of Bergamo

Empirical Economics, 2025, vol. 68, issue 1, No 5, 213-235

Abstract: Abstract We investigate the role of local amenities in shaping compensating wage differentials in labor market populated by high-skilled workers. Using 10 years of longitudinal data on workers productivity along with information on firms and location amenities, we evaluate whether workers are willing to pay to join a better firm and if firms with undesirable attributes must provide higher wages to attract workers. By accounting for unobserved workers heterogeneity, we show that superstars receive positive wage differentials for lower location amenities as well as riskier employments.

Keywords: Compensating wage differentials; Superstars; Local amenities; Professional football (search for similar items in EconPapers)
JEL-codes: J24 J31 R23 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s00181-024-02640-w

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