Urban versus rural areas and multidimensional skill-mismatch
Research has shown that people who work in urban areas earn more than people who work in rural areas. One theoretical mechanism for why wages are higher in urban compared to rural areas is that individuals in urban are better matched to their job. Even if this has been discussed theoretically the empirical evidence for this is limited. This project examines empirically how match quality differs for individuals who live in urban and rural areas. Using Swedish register data and eight different types of skills from the military enlistment test, match quality measures are constructed that capture if individuals work in occupations where their skills are useful and how match quality differs for individuals who live in small and large cities.