skip to content
Matching in cities Preview this item
ClosePreview this item
Checking...

Matching in cities

Author: Wolfgang Dauth; Sebastian Findeisen; Enrico Moretti; Jens Südekum; National Bureau of Economic Research,
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2018.
Series: Working paper series (National Bureau of Economic Research), no. 25227.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
In most countries, average wages tend to be higher in larger cities. In this paper, we focus on the role played by the matching of workers to firms in explaining geographical wage differences. Using rich administrative German data for 1985-2014, we show that wages in large cities are higher not only because large cities attract more high-quality workers, but also because high-quality workers are significantly more  Read more...
Rating:

(not yet rated) 0 with reviews - Be the first.

Subjects
More like this

Find a copy online

Find a copy in the library

&AllPage.SpinnerRetrieving; Finding libraries that hold this item...

Details

Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Wolfgang Dauth; Sebastian Findeisen; Enrico Moretti; Jens Südekum; National Bureau of Economic Research,
OCLC Number: 1062604168
Notes: "November 2018"
Description: 1 online resource (65 pages) : illustrations, maps.
Series Title: Working paper series (National Bureau of Economic Research), no. 25227.
Responsibility: Wolfgang Dauth, Sebastian Findeisen, Enrico Moretti, Jens Suedekum.

Abstract:

In most countries, average wages tend to be higher in larger cities. In this paper, we focus on the role played by the matching of workers to firms in explaining geographical wage differences. Using rich administrative German data for 1985-2014, we show that wages in large cities are higher not only because large cities attract more high-quality workers, but also because high-quality workers are significantly more likely to be matched to high-quality plants. In particular, we find that assortative matching--measured by the correlation of worker fixed effects and plant fixed effects--is significantly stronger in large cities. The elasticity of assortative matching with respect to population has increased by around 75% in the last 30 years. We estimate that in a hypothetical scenario in which we keep the quality and location of German workers and plants unchanged, and equalize within-city assortative matching geographical wage inequality in Germany would decrease significantly. Overall, assortative matching magnifies wage differences caused by worker sorting and is a key factor in explaining the growth of wage disparities between communities over the last three decades. If high-quality workers and firms are complements in production, moreover, increased assortative matching will increase aggregate earnings. We estimate that the increase in within-city assortative matching observed between 1985 and 2014 increased aggregate labor earnings in Germany by 2.1%, or 31.32 billion euros. We conclude that assortative matching increases earnings inequality across communities, but it also generates important efficiency gains for the German economy as a whole.

Reviews

User-contributed reviews
Retrieving GoodReads reviews...
Retrieving DOGObooks reviews...

Tags

Be the first.
Confirm this request

You may have already requested this item. Please select Ok if you would like to proceed with this request anyway.

Linked Data


Primary Entity

<http://www.worldcat.org/oclc/1062604168> # Matching in cities
    a schema:CreativeWork, schema:Book, schema:MediaObject ;
    library:oclcnum "1062604168" ;
    library:placeOfPublication <http://id.loc.gov/vocabulary/countries/mau> ;
    schema:about <http://experiment.worldcat.org/entity/work/data/5599471346#Topic/wage_differentials_econometric_models> ; # Wage differentials--Econometric models
    schema:about <http://experiment.worldcat.org/entity/work/data/5599471346#Place/germany> ; # Germany.
    schema:about <http://experiment.worldcat.org/entity/work/data/5599471346#Topic/regional_economics_germany_econometric_models> ; # Regional economics--Germany--Econometric models
    schema:about <http://experiment.worldcat.org/entity/work/data/5599471346#Topic/regional_economics_econometric_models> ; # Regional economics--Econometric models
    schema:about <http://experiment.worldcat.org/entity/work/data/5599471346#Topic/wage_differentials_germany_econometric_models> ; # Wage differentials--Germany--Econometric models
    schema:about <http://experiment.worldcat.org/entity/work/data/5599471346#Topic/business_enterprises_germany_employees_econometric_models> ; # Business enterprises--Germany--Employees--Econometric models
    schema:about <http://experiment.worldcat.org/entity/work/data/5599471346#Topic/labor_market_econometric_models> ; # Labor market--Econometric models
    schema:about <http://experiment.worldcat.org/entity/work/data/5599471346#Topic/labor_market_germany_econometric_models> ; # Labor market--Germany--Econometric models
    schema:author <http://experiment.worldcat.org/entity/work/data/5599471346#Person/dauth_wolfgang> ; # Wolfgang Dauth
    schema:author <http://experiment.worldcat.org/entity/work/data/5599471346#Person/findeisen_sebastian> ; # Sebastian Findeisen
    schema:author <http://experiment.worldcat.org/entity/work/data/5599471346#Person/sudekum_jens> ; # Jens Südekum
    schema:author <http://experiment.worldcat.org/entity/work/data/5599471346#Person/moretti_enrico> ; # Enrico Moretti
    schema:bookFormat schema:EBook ;
    schema:datePublished "2018" ;
    schema:description "In most countries, average wages tend to be higher in larger cities. In this paper, we focus on the role played by the matching of workers to firms in explaining geographical wage differences. Using rich administrative German data for 1985-2014, we show that wages in large cities are higher not only because large cities attract more high-quality workers, but also because high-quality workers are significantly more likely to be matched to high-quality plants. In particular, we find that assortative matching--measured by the correlation of worker fixed effects and plant fixed effects--is significantly stronger in large cities. The elasticity of assortative matching with respect to population has increased by around 75% in the last 30 years. We estimate that in a hypothetical scenario in which we keep the quality and location of German workers and plants unchanged, and equalize within-city assortative matching geographical wage inequality in Germany would decrease significantly. Overall, assortative matching magnifies wage differences caused by worker sorting and is a key factor in explaining the growth of wage disparities between communities over the last three decades. If high-quality workers and firms are complements in production, moreover, increased assortative matching will increase aggregate earnings. We estimate that the increase in within-city assortative matching observed between 1985 and 2014 increased aggregate labor earnings in Germany by 2.1%, or 31.32 billion euros. We conclude that assortative matching increases earnings inequality across communities, but it also generates important efficiency gains for the German economy as a whole."@en ;
    schema:exampleOfWork <http://worldcat.org/entity/work/id/5599471346> ;
    schema:inLanguage "en" ;
    schema:isPartOf <http://experiment.worldcat.org/entity/work/data/5599471346#Series/nber_working_paper_series> ; # NBER working paper series ;
    schema:isPartOf <http://experiment.worldcat.org/entity/work/data/5599471346#Series/working_paper_series_national_bureau_of_economic_research> ; # Working paper series (National Bureau of Economic Research) ;
    schema:name "Matching in cities"@en ;
    schema:productID "1062604168" ;
    schema:publisher <http://experiment.worldcat.org/entity/work/data/5599471346#Organization/national_bureau_of_economic_research> ; # National Bureau of Economic Research,
    schema:url <http://papers.nber.org/papers/25227> ;
    schema:url <http://www.nber.org/papers/w25227> ;
    schema:url <http://www.library.yorku.ca/e/resolver/id/287744602> ;
    wdrs:describedby <http://www.worldcat.org/title/-/oclc/1062604168> ;
    .


Related Entities

<http://experiment.worldcat.org/entity/work/data/5599471346#Organization/national_bureau_of_economic_research> # National Bureau of Economic Research,
    a schema:Organization ;
    schema:name "National Bureau of Economic Research," ;
    .

<http://experiment.worldcat.org/entity/work/data/5599471346#Person/dauth_wolfgang> # Wolfgang Dauth
    a schema:Person ;
    schema:familyName "Dauth" ;
    schema:givenName "Wolfgang" ;
    schema:name "Wolfgang Dauth" ;
    .

<http://experiment.worldcat.org/entity/work/data/5599471346#Person/findeisen_sebastian> # Sebastian Findeisen
    a schema:Person ;
    schema:familyName "Findeisen" ;
    schema:givenName "Sebastian" ;
    schema:name "Sebastian Findeisen" ;
    .

<http://experiment.worldcat.org/entity/work/data/5599471346#Person/moretti_enrico> # Enrico Moretti
    a schema:Person ;
    schema:familyName "Moretti" ;
    schema:givenName "Enrico" ;
    schema:name "Enrico Moretti" ;
    .

<http://experiment.worldcat.org/entity/work/data/5599471346#Person/sudekum_jens> # Jens Südekum
    a schema:Person ;
    schema:familyName "Südekum" ;
    schema:givenName "Jens" ;
    schema:name "Jens Südekum" ;
    .

<http://experiment.worldcat.org/entity/work/data/5599471346#Series/nber_working_paper_series> # NBER working paper series ;
    a bgn:PublicationSeries ;
    schema:hasPart <http://www.worldcat.org/oclc/1062604168> ; # Matching in cities
    schema:name "NBER working paper series ;" ;
    .

<http://experiment.worldcat.org/entity/work/data/5599471346#Series/working_paper_series_national_bureau_of_economic_research> # Working paper series (National Bureau of Economic Research) ;
    a bgn:PublicationSeries ;
    schema:hasPart <http://www.worldcat.org/oclc/1062604168> ; # Matching in cities
    schema:name "Working paper series (National Bureau of Economic Research) ;" ;
    .

<http://experiment.worldcat.org/entity/work/data/5599471346#Topic/business_enterprises_germany_employees_econometric_models> # Business enterprises--Germany--Employees--Econometric models
    a schema:Intangible ;
    schema:name "Business enterprises--Germany--Employees--Econometric models"@en ;
    .

<http://experiment.worldcat.org/entity/work/data/5599471346#Topic/labor_market_econometric_models> # Labor market--Econometric models
    a schema:Intangible ;
    schema:name "Labor market--Econometric models"@en ;
    .

<http://experiment.worldcat.org/entity/work/data/5599471346#Topic/labor_market_germany_econometric_models> # Labor market--Germany--Econometric models
    a schema:Intangible ;
    schema:name "Labor market--Germany--Econometric models"@en ;
    .

<http://experiment.worldcat.org/entity/work/data/5599471346#Topic/regional_economics_econometric_models> # Regional economics--Econometric models
    a schema:Intangible ;
    schema:name "Regional economics--Econometric models"@en ;
    .

<http://experiment.worldcat.org/entity/work/data/5599471346#Topic/regional_economics_germany_econometric_models> # Regional economics--Germany--Econometric models
    a schema:Intangible ;
    schema:name "Regional economics--Germany--Econometric models"@en ;
    .

<http://experiment.worldcat.org/entity/work/data/5599471346#Topic/wage_differentials_econometric_models> # Wage differentials--Econometric models
    a schema:Intangible ;
    schema:name "Wage differentials--Econometric models"@en ;
    .

<http://experiment.worldcat.org/entity/work/data/5599471346#Topic/wage_differentials_germany_econometric_models> # Wage differentials--Germany--Econometric models
    a schema:Intangible ;
    schema:name "Wage differentials--Germany--Econometric models"@en ;
    .


Content-negotiable representations

Close Window

Please sign in to WorldCat 

Don't have an account? You can easily create a free account.