Economics, Econometrics and Finance
8 years ago

Education Divide: Capital Region Workers Earn More Due to Higher Education Levels.

Journal of Urban Economics
Evidence on metropolitan wage differences across industries and over time
Edward Montgomery

Paper Summary

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The study looked at why wages differ between the capital and non-capital regions in Korea. They found that about 26.9% of the wage difference is due to differences in worker skills in the capital region. Workers in the capital region also have higher education levels, which explains a big part of their wage advantage. When looking at specific job types, more of the wage difference can be explained. This means that using detailed job categories helps to better understand why wages vary between regions.