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Why Does Birthplace Matter So Much? Sorting, Learning and Geography

Clement Bosquet () and Henry Overman ()

SERC Discussion Papers from Spatial Economics Research Centre, LSE

Abstract: We consider the link between birthplace and wages. Using a unique panel dataset we estimate a raw elasticity of wage with respect to birthplace size of 4.6%, two thirds of the 6.8% raw elasticity with respect to city size. We consider a number of mechanisms through which this birthplace effect could arise. Our results suggest that inter-generational transmission (sorting) and the effect of birthplace on current location (geography) both play a role in explaining the effect of birthplace. We find no role for human capital formation at least in terms of educational outcomes (learning). Our results highlight the importance of intergenerational sorting in helping explain the persistence of spatial disparities.

Keywords: place of birth; spatial sorting; lifetime mobility (search for similar items in EconPapers)
JEL-codes: J61 J62 R23 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo, nep-lab and nep-ure
Date: 2016-01
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Working Paper: Why does birthplace matter so much? Sorting, learning and geography (2016) Downloads
Working Paper: Why does birthplace matter so much? sorting, learning and geography (2016) Downloads
Working Paper: Why does birthplace matter so much? Sorting, learning and geography (2016) Downloads
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