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AbstractWe investigate theoretically and empirically how urban residence contributes to interpersonal differentials in wealth accumulation trajectories through its interrelated influences on labour and housing market outcomes. On the basis of Norwegian register data, we estimate models of one's position in various national wealth distributions over the 2010–2018 period, employing fixed‐effects to reduce geographic selection bias and obtain plausibly causal estimates of the impact of moving between levels of the rural–urban hierarchy. We find that residing in a more urbanized area for a longer duration is strongly related to one's rank in the net wealth, housing wealth and financial wealth distributions. Differentials in net wealth growth among levels of urbanization are most dramatic for younger and higher‐educated individuals, with further advantages for those who settle in Oslo. Structural equation modelling reveals that these plausibly causal effects arise primarily through gains in housing equity and (to a lesser degree) in earnings and capital incomes, confirming our conceptual model.

This article investigates the relevance of spatial assimilation theory in Copenhagen, Helsinki, Oslo, and Stockholm. An important backdrop is the "Nordic model of welfare": We assume that welfare generosity decreases the speed of spatial integration. The study uses non-Western immigrants as a target group and natives as a reference group. We register location in 2000 and 2008, and analyze integration in terms of neighborhood status and residential segregation. The results show, in all cities, a lack of aggregate upward mobility in the spatial hierarchy. We also find a negligible effect of upward earnings mobility on upward spatial mobility. Upward spatial mobility increases integration in ethnic terms, but other factors work in the opposite direction and contribute to prevailing segregation. The results as a whole strengthen the purported association between welfare state characteristics and spatial integration. Deviant outcomes, particularly in Helsinki, are explained by immigration history and housing market structure.