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City size and skill intensity

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  • Elvery, Joel A.

Abstract

Many have theorized that the productivity of human capital increases with city size. If this were true, one would expect production in large cities to be more skill intensive than in small cities, even within industry. This paper uses data on the occupational mix at establishments to test whether skill intensity is greater in large cities. Establishments in metropolitan areas with population above two million use a more skill intensive mix of workers than comparable establishments in metropolitan areas with population below one million. The differences in skill intensity are not the same in all industries; establishments in relatively skill intensive industries are even more skill intensive in large MSAs. These results support theories that suggest that the productivity gains from agglomeration are larger for skilled labor than unskilled labor.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 40 (2010)
Issue (Month): 6 (November)
Pages: 367-379

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Handle: RePEc:eee:regeco:v:40:y:2010:i:6:p:367-379

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Web page: http://www.elsevier.com/locate/regec

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Keywords: Agglomeration Urban wage premium Occupational mix;

References

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Citations

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Cited by:
  1. Kok, Suzanne & ter Weel, Bas, 2014. "Cities, Tasks and Skills," IZA Discussion Papers 8053, Institute for the Study of Labor (IZA).
  2. Winters, John V, 2010. "Human Capital and Population Growth in Non-Metropolitan U.S. Counties: The Importance of College Student Migration," MPRA Paper 25592, University Library of Munich, Germany.
  3. Winters, John V, 2011. "Human Capital, Higher Education Institutions, and Quality of Life," MPRA Paper 28484, University Library of Munich, Germany.
  4. Dusan Paredes & Marcelo Lufin & Patricio Aroca, 2012. "The estimation of urban premium wage using propensity score analysis: some considerations from the spatial perspective," Documentos de Trabajo en Economia y Ciencia Regional 21, Universidad Catolica del Norte, Chile, Department of Economics, revised Apr 2012.
  5. Suzanne Kok & Bas ter Weel, 2014. "Cities, Tasks and Skills," CPB Discussion Paper 269, CPB Netherlands Bureau for Economic Policy Analysis.
  6. Aurélie LALANNE (GREThA, CNRS, UMR 5113) & Guillaume POUYANNE ( GREThA, CNRS, UMR 5113), 2012. "Ten years of metropolization in economics: a bibliometric approach (In French)," Cahiers du GREThA 2012-11, Groupe de Recherche en Economie Théorique et Appliquée.
  7. Vincent Boitier, 2013. "Endogenous city size in urban search models: the case of high reallocation costs," ERSA conference papers ersa13p590, European Regional Science Association.

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