Agglomerations, tasks and wage growth

Arbeitspapier

Wage growth is stronger in larger cities, but this relationship holds exclusively for non-manual workers. Using rich German administrative data, I study the heterogeneity in the pecuniary value of big city experience, a measure of dynamic agglomeration economies, and its consequences for the city-size wage gap. After 15 years of work experience in Munich the cumulative earnings premium relative to a median-sized city is 15% for workers in the most manual occupations, 25% for workers in the least manual occupations and 30% for workers in the most analytical occupations. This cumulative wage premium is 3 to 5 times the magnitude of the static city-size wage gap.

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• ISBN: 978-3-96973-165-9
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Ruhr Economic Papers ; No. 999

Classification and Topics

• Classification: Wirtschaft ; General Regional Economics (includes Regional Data) ; Wage Level and Structure; Wage Differentials ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
• Subject: Cities ; agglomeration ; tasks ; wages ; wage growth ; Germany

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Perl, Maximilian
• Event: Veröffentlichung
• (who): RWI - Leibniz-Institut für Wirtschaftsforschung
• (where): Essen
• (when): 2023

Further information

• DOI: doi:10.4419/96973165
• Handle: http://hdl.handle.net/10419/269230