A Test of the Learning-by-Doing Explanation for the Urban Wage Premium
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We test if the measured large and stable urban wage premium is related to acquired skill differentials between urban and non-urban workers. We newly document (1) a large urban premium is not fully explained by the differences in the cost of living and (2) urban workers do not experience higher wage growth than non-urban workers. These empirical findings contradict the learning-by-doing explanation for the urban wage premium and they can be fully explained by a gradual ability sorting hypothesis in which more able workers gravitate to urban areas.
Abstract
We test if the measured large and stable urban wage premium is related to acquired skill differentials between urban and non-urban workers. We newly document (1) a large urban premium is not fully explained by the differences in the cost of living and (2) urban workers do not experience higher wage growth than non-urban workers. These empirical findings contradict the learning-by-doing explanation for the urban wage premium and they can be fully explained by a gradual ability sorting hypothesis in which more able workers gravitate to urban areas.
참고문헌 (9)
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