Tuesday February 6th 2018 Paul Verstraten (CPB) will give a presentation titled "Why do wages grow faster in urban areas? An empirical investigation of the role of spatial sorting".
|Date||Tuesday, 6 February 2018|
|Time||13:00 - 14:00|
|Location||CPB office (room 3, Braamzaal), Bezuidenhoutseweg 30, the Hague|
|Presentation||Paul Verstraten (CPB)|
|Discussant||Martijn Smit (UU)|
|Rubric||Labor economics, spatial economics|
The CPB organises seminars for researchers.
In these seminars academic papers are presented and discussed. The preliminary
findings, presented and discussed, are not intended for publication in any form.
Journalists with questions about seminars, please contact Suzanne van Gils: +31 6 21560776.
Seminars are held on Tuesday from 13.00h to 14.00h.
The existence of an urban wage growth premium is a well-established empirical fact. This article challenges the conventional view that faster wage growth for urban workers is mainly caused by human capital spillovers. Instead, we find that the positive association between city size and wage growth is to a great extent driven by sorting of workers and firms, with inherently higher wage growth, into bigger cities. Having controlled for spatial sorting, we conclude that only young workers experience significant urban wage growth benefits. Wage level benefits of urban areas are important to all types of workers, especially the highly educated.
Disclaimer: 'The views and analysis presented in the seminar do not necessarily reflect the opinion of the CPB'