have substantial effects on wages and income inequality. Urban costs play an important role for locational and economic … with endogenous markups on wages and selection. With increasing commuting technology only more productive and less firms … survive. Firms have higher costs because they have to pay higher wages to compensate workers for the higher urban costs …

-graduation starting real wages and whether the latter are differently influenced by the reasons behind these discontinuities. We analyse … instruments. Conditional on the levels of schooling and experience, we find a positive effect on wages of temporary schooling …