| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 971872 | Journal of Urban Economics | 2010 | 14 Pages |
Abstract
This paper provides a consumption-side explanation for the urban wage premium. The paper shows that if the taste for consumption variety is a luxury good, high average wages in large cities can be due to the selection of high-skill workers choosing to live there. A unique implication is that urban wage premiums are decreasing in skills and can even be negative for very high-skill workers. I confirm this implication using data on the health care workers.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Sanghoon Lee,