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Location, Location, Location
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AI
DOI：10.1257/app.20220427.png)
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Abstract
En 中文
We use linked employer-employee data to study the causal effects of location on earnings in the United States. We estimate a model with employer and employee effects, then aggregate to the commuting zone ( CZ ) level. Sorting across firms biases traditional movers designs. Our model accurately predicts earnings changes for CZ movers after accounting for firm sorting. Worker skills explain half of observed earnings differences across CZs; observable characteristics understate this. Industry composition explains little of average place effects. Costs at least offset CZ earnings premia on average; workers who move to higher-wage CZs have equal or lower real consumption. ( JEL J24, J31, R23, R32)
Keywords:
HIGH WAGE WORKERS
AGGLOMERATION ECONOMIES
CITIES
NEIGHBORHOODS
HETEROGENEITY
DISPARITIES
IMPACTS
PLACE
FIRMS
Journal
A
IF:
6.2
Papers:
719
Citations:
6.8K
