This paper estimates the causal effect of the wage on the recruitment rate at the establishment level. During the 1990s, the wage setting for certified teachers in Norway was completely centralized, with a wage premium of about 10 percent at schools with severe recruitment problems in the past...

Income levels are higher in cities. The evidence for the income gap between urban and rural areas is overwhelming, but the agglomeration effect is hard to identify. Recent advances make use of individual level data to separate out sorting and instrumentation to handle the endogeneity of...