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The urban wage premium in imperfect labor markets

Boris, Hirsch, Jahn, Elke J., Manning, Alan ORCID: 0000-0002-7884-3580 and Oberfichtner, Michael (2020) The urban wage premium in imperfect labor markets. Journal of Human Resources. ISSN 0022-166X

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Identification Number: 10.3368/jhr.monopsony.0119-9960R1


Using administrative data for West Germany, this paper investigates whether part of the urban wage premium stems from greater competition in denser labor markets. We show that employers possess less wage-setting power in denser markets. We further document that an important part of the observed urban wage premia can be explained by greater competition in denser labor markets.

Item Type: Article
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Additional Information: © 2020 Board of Regents of the University of Wisconsin System
Divisions: Economics
Subjects: H Social Sciences > HD Industries. Land use. Labor
JEL classification: R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R23 - Regional Migration; Regional Labor Markets; Population
J - Labor and Demographic Economics > J4 - Particular Labor Markets > J42 - Monopsony; Segmented Labor Markets
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
Date Deposited: 07 Oct 2020 08:42
Last Modified: 19 Jul 2024 16:03

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