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Education and Geographical Mobility: The Role of the Job Surplus

Michael Amior

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: Better-educated workers form many more long-distance job matches, and they move more quickly following local employment shocks. I argue this is a consequence of larger dispersion in wage offers, independent of geography. In a frictional market, this generates larger surpluses for workers in new matches, which can better justify the cost of moving - should the offer originate from far away. The market is then "thinner" but better integrated spatially. I motivate my hypothesis with new evidence on mobility patterns and subjective moving costs;and I test it using wage returns to local and long-distance matches over the jobs ladder.

Keywords: geographical mobility; job search; education (search for similar items in EconPapers)
JEL-codes: J61 J64 R23 (search for similar items in EconPapers)
Date: 2019-05
New Economics Papers: this item is included in nep-geo, nep-lab, nep-mig and nep-ure
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