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Title: Cities and Skills
Resulting in 1 citation.
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Glaeser, Edward L. Mare, David C. |
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Cities and Skills NBER Working Paper No. 4728, National Bureau of Economic Research, May 1994. Also: http://nber.nber.org/papers/W4728 Cohort(s): NLSY79 Publisher: National Bureau of Economic Research (NBER) Keyword(s): Modeling, Fixed Effects; Rural/Urban Differences; Rural/Urban Migration; Transfers, Skill; Variables, Instrumental; Wage Dynamics; Wage Growth; Wage Theory This paper examines the productivity (and wage) gains from locating in dense, urban environments. We distinguish between three potential explanations of why firms are willing to pay urban workers more: (I) the urban wage premium is spurious and is the result of omitted ability measures, (2) the urban wage premium works because cities enhance productivity and (3) the urban wage premium is the result of faster skill accumulation in cities. Using a combination of standard regressions, individual fixed effects estimation (using migrants) and instrumental variables methods, we find that the urban wage premium does not represent omitted ability bias and it is only in part a level effect to productivity. The bulk of the urban wage premium accrues over time as a result of greater skill accumulation in cities. |
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Bibliography Citation
Glaeser, Edward L. and David C. Mare. "Cities and Skills." NBER Working Paper No. 4728, National Bureau of Economic Research, May 1994. |