Changes in Urban Wages, Jobs, and Workers from 1958-2017

We analyze the change in the urban wage premium over the last 60 years. We focus on differences by gender and skill levels, with an emphasis on changes throughout the earnings distribution. We assess the importance of both changing selection into urban areas, as well as the importance of shifts in demand for skills. Both forces explain the dramatic drop in urban premium. Event study analysis reveals that the positive selection into urban mobility declines over time. Among men at the bottom of the distribution, changes in selection are key in accounting for the collapse of the urban wage premium.