In Search of Better Opportunities : Sorting and Agglomeration Effects among Young College Graduates in Colombia
This paper studies the dynamic sorting of workers prior to labor market entry that leads to skill differences across cities of different sizes, as well as its consequences on the estimation of agglomeration effects. Using rich administrative data f...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/301431602185301689/In-Search-of-Better-Opportunities-Sorting-and-Agglomeration-Effects-among-Young-College-Graduates-in-Colombia http://hdl.handle.net/10986/34625 |
| Summary: | This paper studies the dynamic sorting
of workers prior to labor market entry that leads to skill
differences across cities of different sizes, as well as its
consequences on the estimation of agglomeration effects.
Using rich administrative data for young, college-educated
workers in Colombia, the paper shows that the most talented
and best trained sort to big cities primarily because they
attend college there and remain for work. The availability
of colleges in an individual's high school city,
parental resources, and high school city size are the most
important determinants of the decision to move for college.
The relatively less able remain in medium and small cities
or move there for work after attending college in big
cities. Pre-labor market sorting thus concentrates
population and skill in big cities. As a result of this
sorting, agglomeration effects are stronger for college than
work city size, even after controlling for mediating factors
such as individual ability or college selectivity. |
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