# **Appendix A. Additional mechanisms on agglomeration effects**

Table A.1: Additional mechanisms on agglomeration effects for college graduates

||||Logwage|||
|---|---|---|---|---|---|
||(1)|(2)|(3)|(4)|(5)|
|Log work city size|0.0173<br>(0.0100)<sup>_∗_</sup>|0.0163<br>(0.0100)|0.0152<br>(0.0099)|0.0151<br>(0.0098)|0.0151<br>(0.0099)|
|Log college city size|0.0535<br>(0.0090)<sup>_∗∗∗_</sup>|0.0356<br>(0.0129)<sup>_∗∗∗_</sup>|0.0349<br>(0.0109)<sup>_∗∗∗_</sup>|0.0351<br>(0.0106)<sup>_∗∗∗_</sup>|0.0358<br>(0.0102)<sup>_∗∗∗_</sup>|
|Log high school city size|-0.0097<br>(0.0039)<sup>_∗∗_</sup>|-0.0118<br>(0.0039)<sup>_∗∗∗_</sup>|-0.0078<br>(0.0039)<sup>_∗∗_</sup>|-0.0068<br>(0.0037)<sup>_∗_</sup>|-0.0069<br>(0.0038)<sup>_∗_</sup>|
|Tier 1 (highest quality)|0.1654<br>(0.0293)<sup>_∗∗∗_</sup>|0.2079<br>(0.0343)<sup>_∗∗∗_</sup>|0.1987<br>(0.0340)<sup>_∗∗∗_</sup>|0.1917<br>(0.0321)<sup>_∗∗∗_</sup>|0.1820<br>(0.0305)<sup>_∗∗∗_</sup>|
|Tier 2|0.0390<br>(0.0336)|0.0567<br>(0.0309)<sup>_∗_</sup>|0.0609<br>(0.0340)<sup>_∗_</sup>|0.0582<br>(0.0330)<sup>_∗_</sup>|0.0536<br>(0.0325)<sup>_∗_</sup>|
|Tier 3|0.0398<br>(0.0255)|0.0280<br>(0.0254)|0.0099<br>(0.0220)|0.0119<br>(0.0218)|0.0137<br>(0.0222)|
|Tier 4|0.0474<br>(0.0190)<sup>_∗∗_</sup>|0.0357<br>(0.0260)|0.0267<br>(0.0295)|0.0313<br>(0.0282)|0.0339<br>(0.0268)|
|Standardized Saber 11|0.0888<br>(0.0035)<sup>_∗∗∗_</sup>|0.0878<br>(0.0033)<sup>_∗∗∗_</sup>|0.0726<br>(0.0039)<sup>_∗∗∗_</sup>|0.0697<br>(0.0037)<sup>_∗∗∗_</sup>|0.0670<br>(0.0035)<sup>_∗∗∗_</sup>|
|Public high school||-0.0165<br>(0.0053)<sup>_∗∗∗_</sup>|-0.0121<br>(0.0053)<sup>_∗∗_</sup>|0.0032<br>(0.0055)|0.0118<br>(0.0050)<sup>_∗∗_</sup>|
|Public college||-0.1331<br>(0.0355)<sup>_∗∗∗_</sup>|-0.1132<br>(0.0268)<sup>_∗∗∗_</sup>|-0.1016<br>(0.0246)<sup>_∗∗∗_</sup>|-0.0885<br>(0.0228)<sup>_∗∗∗_</sup>|
|Mother, college degree||||0.0736<br>(0.0111)<sup>_∗∗∗_</sup>|0.0513<br>(0.0106)<sup>_∗∗∗_</sup>|
|Mother, associates degree||||0.0370<br>(0.0081)<sup>_∗∗∗_</sup>|0.0332<br>(0.0083)<sup>_∗∗∗_</sup>|
|Mother, high school degree||||0.0187<br>(0.0051)<sup>_∗∗∗_</sup>|0.0172<br>(0.0050)<sup>_∗∗∗_</sup>|
|Birth order #2||||0.0089<br>(0.0051)<sup>_∗_</sup>|0.0084<br>(0.0050)<sup>_∗_</sup>|
|Birth order #3 or higher||||0.0248<br>(0.0055)<sup>_∗∗∗_</sup>|0.0222<br>(0.0055)<sup>_∗∗∗_</sup>|
|Very high household income|||||0.0652<br>(0.0125)<sup>_∗∗∗_</sup>|
|High household income|||||0.0000<br>(0.0067)|
|Moderate household income|||||-0.0103<br>(0.0066)|
|Low household income|||||-0.0107<br>(0.0061)<sup>_∗_</sup>|
|Major of study indicators|No|No|Yes|Yes|Yes|
|Observations|184,719|184,719|184,719|184,719|184,719|
|_R_<sup>2</sup>|0.2744|0.2827|0.2988|0.3002|0.3017|

_Notes_ : All specifications include a constant and indicator variables for age, year and 2-digit economic sector. Additional controls are experience and indicators for female, ethnicity, technological school and technical and technological institute. ‘Tier 5 (lowest quality),’ ‘Mother, less than high school’ and ‘Very low household income’ are the omitted categories. Coefficients are reported with robust standard errors in parenthesis, which are clustered by urban area of work.<sup>_∗∗∗_</sup> ,<sup>_∗∗_</sup> , and<sup>_∗_</sup> indicate significance at the 1, 5, and 10 percent levels.

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