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Market Thickness and the Early Labour Market Career of University Graduates: An Urban Advantage?

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Author

Summary, in English

A < sc > bstract </sc > We analyse the influence of market thickness for skills on initial wages and the early job market career 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 increase employment probabilities and yield higher rewards to human capital, even after controlling for employment selection. The premium on initial wages for graduates in urban regions is in the interval of 5-6%, and we estimate a wage-growth premium of about 2-4%. Thicker markets for skills appear as a key reason for the concentration of graduates to larger cities.

Department/s

Publishing year

2014

Language

English

Pages

396-419

Publication/Series

Spatial Economic Analysis

Volume

9

Issue

4

Document type

Journal article

Publisher

Taylor & Francis

Topic

  • Social Sciences Interdisciplinary

Keywords

  • matching
  • mobility
  • agglomeration economies
  • job switching
  • university
  • graduates
  • market thickness
  • urban wage premium
  • Human capital

Status

Published

ISBN/ISSN/Other

  • ISSN: 1742-1772