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Market Thickness and the Early Labour Market Career of University Graduates: An Urban Advantage?
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation. Swedish Entrepreneurship Forum, Sweden.ORCID iD: 0000-0001-8377-1633
2014 (English)In: Spatial Economic Analysis, ISSN 1742-1772, E-ISSN 1742-1780, Vol. 9, no 4, 396-419 p.Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
2014. Vol. 9, no 4, 396-419 p.
Keyword [en]
matching, mobility, agglomeration economies, job switching, university graduates, market thickness, urban wage premium, Human capital
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-157623DOI: 10.1080/17421772.2014.961534ISI: 000344776700004ScopusID: 2-s2.0-84911891439OAI: diva2:770831

QC 20141211

[epaisseur du marche initial de l'emploi pour les diplomes universitaires - un avantage en ville?]

Available from: 2014-12-11 Created: 2014-12-11 Last updated: 2014-12-11Bibliographically approved

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