Carlsen, Fredrik; Rattsø, Jørn; Stokke, Hildegunn Ekroll - 2012 - First draft: February 15, 2012
Income levels are higher in cities. The evidence for the income gap between urban and rural areas is overwhelming, but the agglomeration effect is hard to identify. Recent advances make use of individual level data to separate out sorting and instrumentation to handle the endogeneity of...