Market Thickness and the Early Labor Market Career of University Graduates- An urban advantage?
Martin Andersson () and
Per Thulin ()
No 2013/2, Papers in Innovation Studies from Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy
We analyze the influence of market thickness for skills on initial wages and subsequent wage development of university graduates. Using Swedish micro-level panel data on a cohort of graduates, we show that two out of three graduates move to large cities upon graduation. Large cities yield higher rewards to human capital and a stronger early job market career. The premium on initial wages for urban graduates is in the interval of 6-12 percent, and we estimate a wage-growth premium of about 3 percent. Thicker markets for skills appear as a key reason for the concentration of university graduates to larger cities.
Keywords: human capital; university graduates; urban wage premium; market thickness; matching; agglomeration economies; migration; job switching (search for similar items in EconPapers)
JEL-codes: J31 J61 R10 R12 (search for similar items in EconPapers)
Pages: 32 pages
New Economics Papers: this item is included in nep-hrm, nep-lab, nep-lma, nep-mig and nep-ure
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Journal Article: Market Thickness and the Early Labour Market Career of University Graduates: An Urban Advantage? (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:lucirc:2013_002
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