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Abstract:![]()
CEP discussion paper
Education and geographical mobility: the role of the job surplus Michael Amior May 2019 Paper No' CEPDP1616: Full Paper ![]() Better-educated workers form many more long-distance job matches, and they move more quickly following local employment shocks. I argue this is a consequence of larger dispersion in wage offers, independent of geography. In a frictional market, this generates larger surpluses for workers in new matches, which can better justify the cost of moving - should the offer originate from far away. The market is then “thinner” but better integrated spatially. I motivate my hypothesis with new evidence on mobility patterns and subjective moving costs;and I test it using wage returns to local and long-distance matches over the jobs ladder. |
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