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WHAT DRIVES THE URBAN WAGE PREMIUM? EVIDENCE ALONG THE WAGE DISTRIBUTION

Alessia Matano and Paolo Naticchioni ()
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Alessia Matano: University of Barcelona

No 815, Working Papers from CREI Università degli Studi Roma Tre

Abstract: This paper aims at disentangling the role played by different explanations on the urban wage premium along the wage distribution. We analyze the wage dynamics of migrants from lower to higher density areas in Italy, using quantile regressions and individual data. The results show that unskilled workers benefit more from a wage premium accruing over time, while skilled workers enjoy a wage premium when they migrate as well as a wage increase over time. Further, we find that for unskilled workers the wage growth over time is mainly due to human capital accumulation in line with the “learning” hypothesis, while for skilled workers the wage growth is mainly explained by the “coordination” hypothesis, i.e., cities enhance the probability of better matches between workers and firms.

Keywords: Urban Wage Premium; Human Capital; Spatial Sorting; Wage Distribution; Quantile Fixed Effects (search for similar items in EconPapers)
JEL-codes: J31 J61 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-geo and nep-ure
Date: 2015, Revised 2015
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http://host.uniroma3.it/centri/crei/pubblicazioni/ ... 015/CREI_08_2015.pdf First version, 2015 (application/pdf)

Related works:
Journal Article: WHAT DRIVES THE URBAN WAGE PREMIUM? EVIDENCE ALONG THE WAGE DISTRIBUTION (2016) Downloads
Working Paper: What Drives the Urban Wage Premium? Evidence along the Wage Distribution (2013) Downloads
Working Paper: What Drives the Urban Wage Premium? Evidence along the Wage Distribution (2012) Downloads
Working Paper: What Drives the Urban Wage Premium? Evidence along the Wage Distribution (2012) Downloads
Working Paper: What Drives the Urban Wage Premium? Evidence along the Wage Distribution (2012) Downloads
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