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Abstract:

cover
CEP Discussion Paper
Education and Geographical Mobility: The Role of the Job Surplus
Michael Amior
May 2019
Paper No' CEPDP1616:
Full Paper (pdf)

JEL Classification: J61; J64; R23


Tags: geographical mobility; job search; education

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.