The impact of territories on the salaries of young individuals

Abstract

What influence do the past and present locations of young workers have on their professional careers? To answer this question, Céreq's Génération 2010 survey was used to examine the impact of Employment Zone (EZ) characteristics on wages, particularly through interviews conducted three and seven years after these individuals left the school system. An estimate based on a multi-level model confirms that individual characteristics largely determine the level of pay. However, the characteristics of the EZ also significantly influence pay trends, with the effect of the area being much greater for mobile individuals. In addition, individuals’ career paths within territories leave a lasting impact on their salary progression: the characteristics of the EZ in which they resided in 2013 still exert influence on their salaries in 2017. The proposed analysis also reveals distinct effects based on qualifications and mobility. Territorial inequalities are more pronounced for less mobile graduates, whereas the most mobile graduates can leverage these differences to maximise the returns on their education. However, using data spanning 7 years, it becomes evident that this effect diminishes with repeated territorial mobility. The uniqueness of this article is further underscored by the presentation of results through the cartographic transposition of econometric findings.