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Communication externalities in cities

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  • Charlot, Sylvie
  • Duranton, Gilles

Abstract

To identify communication externalities in French cities, we exploit a unique survey recording workplace communication of individual workers. Our hypothesis is that in larger and/or more educated cities, workers should communicate more. In turn, more communication should have a positive effect on individual wages. By estimating both an earnings and a communication equation, we find evidence of communication externalities. Being in a larger and more educated city makes workers communicate more and in turn this has a positive effects on wages. Only a small fraction of the overall effects of a more educated and larger city on wages percolates through this channel, however.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 56 (2004)
Issue (Month): 3 (November)
Pages: 581-613

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Handle: RePEc:eee:juecon:v:56:y:2004:i:3:p:581-613

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Web page: http://www.elsevier.com/locate/inca/622905

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