a column by Wolfgang Dauth, Sebastian Findeisen, Enrico Moretti and Jens Südekum for VOX: CEPR’s Policy Portal
Large internal wage disparities between cities are a common feature in countries around the world.
Using data from Germany, this column argues that one key driver of this is rising assortative matching of high-quality workers and plants in large cities. One promising strategy to reduce spatial wage disparities is to improve matching within small cities.
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Whilst the article does not explicitly explain “assortative”, a word which is not in my vocabulary, there are many definitions in online dictionaries; mainly about mating habits.
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