Sunday, 1 May 2016

Why birthplace matters so much: Sorting, learning and geography (Clément Bosquet, Henry Overman, VOX)

The effect of an individual’s place of residence on their life chances has long been discussed in public policy debates. This column uses British Household Panel Survey data to assess whether birthplace plays a role in determining future earnings. On average, an individual born in London in the 1970s will earn around 7% more than an individual of the same age and gender born in Manchester; who in turn will earn 5.5% more than an individual born in Cardiff. Parental sorting and the influence of birthplace in decisions about current location both play a role in explaining this effect.

http://voxeu.org/article/why-birthplace-matters-so-much

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