The urban wage premium in imperfect labor markets

Boris, H., Jahn, E. J., Manning, A.ORCID logo & Oberfichtner, M. (2020). The urban wage premium in imperfect labor markets. Journal of Human Resources, https://doi.org/10.3368/jhr.monopsony.0119-9960R1
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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.

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