Essays in regional and labor economics
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Date
2023
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Abstract
Over the past decades, skilled and unskilled households in Western economies have been
making increasingly different location choices. College graduates cluster in dense, urban
regions to a considerably larger extent than high school graduates. This thesis tries to
make progress in understanding the driving forces behind the diverging location choices
of different groups of workers and their implications for regional disparities, policies and
welfare. It consists of three self-contained essays that investigate the causes and consequences
of geographic worker sorting using highly disaggregated microdata for Germany.
Chapter 1 examines to what extent regional disparities in housing costs drive geographic
worker sorting by skill. It further analyzes how place-based policies optimally respond
to the observed trends. Chapters 2 and 3 investigate the effects of sorting by skill and
demographics on regional wage disparities.
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Keywords
Geographic sorting, House prices, Urban wage premium, Spatial equilibrium