Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University
Market Thickness and the Early Labor Market Career of University Graduates- An urban advantage?
(), Martin Andersson
() and Per Thulin
Abstract: 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; (follow links to similar papers)
JEL-Codes: J31; J61; R10; R12; (follow links to similar papers)
32 pages, February 14, 2013
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