No. 14/2013: Education, experience and dynamic urban wage premium

Abstract

We analyze static and dynamic agglomeration effects across education groups. The data are based on administrative registers covering all full time workers in the private sector of Norway during 2001-2010, about 6.5 million worker-year observations, including place and sector of work experience since 1993. Accounting for unobservable abilities with identification based on movers, the static urban wage premium is similar across education groups. When the history of work experience in different regions and sectors is included, we show that the dynamic wage premium increases in education level and that highly educated in high wage sectors have the largest learning advantage.
Keywords: Agglomeration economies, sorting, education, worker experience
JEL Classification: J24, J31, J61, R12, R23