In the present study, we investigate whether workers close to cities are paid higher non-agricultural wages than workers in outlying rural areas. Using data from the nationally representative 2002 CHIP survey, we estimate that rural workers close to urban areas not only benefit from more opportunities to engage in non-agricultural activities, but also from better paid jobs. We also find very robust evidence that workers close to the biggest cities benefit from the highest wage premium (urban hierarchy effects). In addition, the closer to the urban center, the more detrimental is the impact of distance on wages. Finally, we provide evidence on the transmission channels at work.