Why does birthplace matter so much? sorting, learning and geography

Bosquet, Clément and Overman, Henry G. (2016) Why does birthplace matter so much? sorting, learning and geography. SERC discussion papers, 190. Spatial Economics Research Centre, London, UK.

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Abstract

We consider the link between birthplace and wages. Using a unique panel dataset we estimate a raw elasticity of wage with respect to birthplace size of 4.6%, two thirds of the 6.8% raw elasticity with respect to city size. We consider a number of mechanisms through which this birthplace effect could arise. Our results suggest that inter-generational transmission (sorting) and the effect of birthplace on current location (geography) both play a role in explaining the effect of birthplace. We find no role for human capital formation at least in terms of educational outcomes (learning). Our results highlight the importance of intergenerational sorting in helping explain the persistence of spatial disparities.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://www.spatialeconomics.ac.uk/
Additional Information:	© 2016 The Authors
Library of Congress subject classification:	G Geography. Anthropology. Recreation > G Geography (General) H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System:	J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J61 - Geographic Labor Mobility; Immigrant Workers J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J62 - Job, Occupational, and Intergenerational Mobility
Sets:	Research centres and groups > Spatial Economics Research Centre Research centres and groups > Centre for Economic Performance (CEP)
Identification Number:	190
Project and Funder Information:	Project ID Funder Name Funder ID ES/J021342/1 Economic and Social Research Council http://dx.doi.org/10.13039/501100000269 ES/G005966/1 Economic and Social Research Council http://dx.doi.org/10.13039/501100000269
Funders:	Economic and Social Research Council
Date Deposited:	11 May 2016 15:53
URL:	http://eprints.lse.ac.uk/66492/

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