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

Ahlin, Lina LU ; Andersson, Martin LU and Thulin, Per (2014) In Spatial Economic Analysis 9(4). p.396-419
Abstract
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.
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
matching, mobility, agglomeration economies, job switching, university, graduates, market thickness, urban wage premium, Human capital
in
Spatial Economic Analysis
volume
9
issue
4
pages
396 - 419
publisher
Taylor & Francis
external identifiers
  • wos:000344776700004
  • scopus:84911891439
ISSN
1742-1772
DOI
10.1080/17421772.2014.961534
language
English
LU publication?
yes
id
b7119d10-3804-4bbe-bb72-ac932721d9df (old id 4871299)
date added to LUP
2015-01-07 14:00:11
date last changed
2017-09-17 03:15:55
@article{b7119d10-3804-4bbe-bb72-ac932721d9df,
  abstract     = {A &lt; sc &gt; bstract &lt;/sc &gt; 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.},
  author       = {Ahlin, Lina and Andersson, Martin and Thulin, Per},
  issn         = {1742-1772},
  keyword      = {matching,mobility,agglomeration economies,job switching,university,graduates,market thickness,urban wage premium,Human capital},
  language     = {eng},
  number       = {4},
  pages        = {396--419},
  publisher    = {Taylor & Francis},
  series       = {Spatial Economic Analysis},
  title        = {Market Thickness and the Early Labour Market Career of University Graduates: An Urban Advantage?},
  url          = {http://dx.doi.org/10.1080/17421772.2014.961534},
  volume       = {9},
  year         = {2014},
}