Document Abstract

Market thickness and the early labour market career of university graduates: an urban advantage?, IN Spatial Economic Analysis, Vol 9 No 4 Dec 2014, pp396-419

Draws on Swedish micro-level panel data on a cohort of university graduates to analyse the preferences of new graduates for starting their careers in large urban regions. Hypothesises that the job market advantages of large cities are an important reason for their attraction of university graduates, particularly the higher initial wages and higher wage growth associated with thicker skills markets. Looks at the destinations of Swedish graduates from the year 2000 during their first nine years in the labour market, focusing on the relationship between location choices and initial wages, wage growth and rates of job switching. Finds that large cities increase employment probabilities and yield higher rewards to human capital, even after controlling for employment selection and the premium on initial wages for graduates in urban regions is in the interval of 5-6%, with an estimated wage growth premium of 2-4%. Concludes that thicker markets for skills appear to be a key reason for the concentration of graduates in larger cities.

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Publication information

Author:
Ahlin, Lina; Andersson, Martin; Thulin, Peter
Year:
2014
Pages:
24
Ref No:
A53275
Source:
Journal article.

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