Publikation:

Matching in Cities

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2022

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Dauth, Wolfgang
Moretti, Enrico
Suedekum, Jens

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Journal of the European Economic Association. Oxford University Press. 2022, 20(4), pp. 1478-1521. ISSN 1542-4766. eISSN 1542-4774. Available under: doi: 10.1093/jeea/jvac004

Zusammenfassung

Using administrative German data, we show that large cities allow for a more efficient matching between workers and firms and this has important consequences for geographical inequality. Specifically, the match between high-quality workers and high-quality plants is significantly tighter in large cities relative to small cities. Wages in large cities are higher not only because of the higher worker quality, but also because of a stronger assortative matching. Strong assortative matchig in large cities magnifies wage differences caused by worker sorting, and is a key factor in explaining the growth of geographical wage disparities over the last three decades.

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330 Wirtschaft

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ISO 690DAUTH, Wolfgang, Sebastian FINDEISEN, Enrico MORETTI, Jens SUEDEKUM, 2022. Matching in Cities. In: Journal of the European Economic Association. Oxford University Press. 2022, 20(4), pp. 1478-1521. ISSN 1542-4766. eISSN 1542-4774. Available under: doi: 10.1093/jeea/jvac004
BibTex
@article{Dauth2022-02-08Match-56605,
  year={2022},
  doi={10.1093/jeea/jvac004},
  title={Matching in Cities},
  number={4},
  volume={20},
  issn={1542-4766},
  journal={Journal of the European Economic Association},
  pages={1478--1521},
  author={Dauth, Wolfgang and Findeisen, Sebastian and Moretti, Enrico and Suedekum, Jens}
}
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