Baum-Snow, Nathaniel; Pavan, Ronni - In: Review of Economic Studies 79 (2012) 1, pp. 88-127
In this paper, we decompose city size wage premia into various components. We base these decompositions on an estimated on-the-job search model that incorporates latent ability, search frictions, firm-worker match quality, human capital accumulation, and endogenous migration between large,...