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The Urban Wage Premium in Imperfect Labour Markets

Using administrative data for West Germany, this paper investigates whether part of the urban wage premium stems from greater competition in denser labor markets. We show that employers possess less wage-setting power in denser markets. We further document that an important part of the observed urban wage premia can be explained by greater competition in denser labor markets.

Authors Boris Hirsch Elke J. Jahn Alan Manning Michael Oberfichtner

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Professor Dr Boris Hirsch
Professor Dr Boris Hirsch
Economist

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