Education, Mobility and the College Wage Premium

Damba Lkhagvasuren

No 14001, Working Papers from Concordia University, Department of Economics

Abstract: Motivated by large educational differences in geographic mobility, this paper considers a simple dynamic extension of Roy's (1951) model and analyzes it using new evidence on net versus excess mobility and the individual-level relationship between mobility and wages. According to the model, the dispersion of a labor income shock specific to a worker-location match is greater for more educated workers and accounts for large educational differences in mobility. In the model, labor mobility raises both the average wage and the college wage premium, a prediction consistent with differences between Europe and the U.S.

Keywords: mobility; wage structure; a dynamic Roy model; a labor income shock; spatial mismatch; moving cost; local employment dynamics; excess versus net mobility; gross mobility; college premium (search for similar items in EconPapers)
JEL-codes: E24 I24 J31 J61 R23 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2006-10, Revised 2013-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Education, mobility and the college wage premium (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:crd:wpaper:14001

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