Is there a wage curve for the highly educated?ISER Internal Seminars

The study examines how the increased job search among the highly
educated affects their wages in regional labour markets in Finland. We
estimate the individual level wage curves separately for bachelors and
masters and divide the job search in the unemployed and employed job
search. Any significant relationship between the unemployed job search and wages is not found when the individual characteristics are controlled for.

The study finds, instead, a weak negative relationship between the wages
of the masters and the employed job search among them. In addition, the
wages of the masters are found to be lower in the university areas than
elsewhere. There must be incentives not related to the fear of
unemployment that make master level workers accept somewhat lower wage
offers in regions with high employed job search activity or in the areas
with the university location. The incentives might be related to the
willingness to live and work in these regions despite the lower wages,
possibly due to better amenities. Higher wages in regions with low rates
of the employed job search or without the university might hence be paid
as a compensating wage differential due to lack of amenities in those
regions.

Presented by:

Sanna-Mari Hynninen, ISER visitor, University of Jyväskylä, Jyväskylä, Finland.

Date & time:

28 Jan 2009 13:00 pm - 28 Jan 2009 14:00 pm


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