Using 2001 Census data, this paper investigates the extent to which the urban-rural gap in the earnings of employed workers is associated with human capital composition and agglomeration economies. Both factors have been theoretically and empirically linked to urban-rural earnings differences....

University degree holders in large cities are more prevalent and are growing at a more rapid pace than in smaller cities and rural areas. This relatively high rate of growth stems from net migratory flows and/or higher rates of degree attainment in large cities. Using data from the 1996 and 2001...