Human capital and market size

Cecilia Vives Coscojuela

doi:10.1111/pirs.12336

Human capital and market size

Cecilia Vives Coscojuela^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

This paper studies how the size of the labour market affects workers' decisions to invest in human capital. We consider a model of mismatch where firms rank workers according to their level of skills. The matching process operating in the market has the property that the job finding probability of workers depends on market size, market tightness and their ranking. The model is consistent with several facts highlighted in empirical studies: in bigger markets the distribution of human capital is more unequal and the returns to skill are higher.

Original language	English
Pages (from-to)	75-92
Number of pages	19
Journal	Papers in Regional Science
Volume	98
Issue number	1
DOIs	https://doi.org/10.1111/pirs.12336
Publication status	Published - Feb 2019

Keywords

human capital
skill distribution
city size
matching
CITIES
WAGE
INEQUALITY

Access to Document

10.1111/pirs.12336Licence: CC BY-NC-ND

Cite this

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title = "Human capital and market size",

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author = "{Vives Coscojuela}, Cecilia",

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