This paper analyses the impact that local labour market conditions have on entry wages of highly educated workers in Great Britain and Finland. In both countries, workers entering the labour market in regions with (or periods of) tighter job competition obtain lower wages. Competition from...

The study examines how the job competition among the highly educated affects their wages in regional labour markets. We estimate individual-level wage curves separately for graduates and post-graduates and divide the job competition in unemployed and employed job search by level of education....