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Open Access

The Urban Wage Premium in Imperfect Labor Markets

Boris Hirsch, Elke J. Jahn, Alan Manning and Michael Oberfichtner
Journal of Human Resources, April 2022, 57 (S) S111-S136; DOI: https://doi.org/10.3368/jhr.monopsony.0119-9960R1
Boris Hirsch
Boris Hirsch is Professor of Economics at Leuphana University of Lüneburg and an affiliate of the IWH and IZA.
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Elke J. Jahn
Elke J. Jahn is Professor of Economics at Bayreuth University, Distinguished Researcher at the Institute for Employment Research (IAB), and an affiliate of the IZA.
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Alan Manning
Alan Manning is Professor of Economics at the London School of Economics and Director of the Community Programme at the Centre for Economic Performance at the LSE.
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Michael Oberfichtner
Michael Oberfichtner is Researcher at the Institute for Employment Research (IAB).
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Abstract

Using administrative data for West Germany, we investigate 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.

JEL Classification:
  • R23
  • J42
  • J31
  • Received January 2019.
  • Accepted September 2020.

This open access article is distributed under the terms of the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0) and is freely available online at: http://jhr.uwpress.org.

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Journal of Human Resources: 57 (S)
Journal of Human Resources
Vol. 57, Issue S
1 Apr 2022
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The Urban Wage Premium in Imperfect Labor Markets
Boris Hirsch, Elke J. Jahn, Alan Manning, Michael Oberfichtner
Journal of Human Resources Apr 2022, 57 (S) S111-S136; DOI: 10.3368/jhr.monopsony.0119-9960R1

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The Urban Wage Premium in Imperfect Labor Markets
Boris Hirsch, Elke J. Jahn, Alan Manning, Michael Oberfichtner
Journal of Human Resources Apr 2022, 57 (S) S111-S136; DOI: 10.3368/jhr.monopsony.0119-9960R1
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Keywords

  • R23
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