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Open Access

The Urban Wage Premium in Imperfect Labor Markets

Boris Hirsch, Elke J. Jahn, Alan Manning and Michael Oberfichtner
Published online before print November 10, 2020, 0119-9960R1; DOI: https://doi.org/10.3368/jhr.monopsony.0119-9960R1
Boris Hirsch
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Elke J. Jahn
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Alan Manning
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Michael Oberfichtner
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Abstract

Using administrative data for West Germany, this paper investigates 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

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: 58 (3)
Journal of Human Resources
Vol. 58, Issue 3
1 May 2023
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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 Nov 2020, 0119-9960R1; 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 Nov 2020, 0119-9960R1; DOI: 10.3368/jhr.monopsony.0119-9960R1
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Keywords

  • R23
  • J42
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