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Search, Sorting, and Urban Agglomeration

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Author Info
Wheeler, Christopher H

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Abstract

Studies have suggested that urban agglomeration enhances productivity by facilitating the firm-worker matching process. This article develops a model that formalizes this notion and demonstrates that, when firm capital and worker skill are complementary in production, urban agglomeration will tend to generate more efficient, yet segregated matches. As a result, not only will local market size be positively associated with average productivity, it will also generate greater between-skill-group wage inequality and a higher expected return to skill acquisition. Recent data from the counties and metropolitan areas of the United States is consistent with each of these implications. Copyright 2001 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 19 (2001)
Issue (Month): 4 (October)
Pages: 879-99
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Handle: RePEc:ucp:jlabec:v:19:y:2001:i:4:p:879-99

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  3. Sabrina Di Addario, 2005. "Job Search in Thick Markets: Evidence from Italy," Development Working Papers 198, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
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  4. R. Jason Faberman, 2007. "The relationship between the establishment age distribution and urban growth," Working Papers 07-18, Federal Reserve Bank of Philadelphia. [Downloadable!]
  5. Shihe Fu & Stephen L. Ross, 2007. "Wage Premia in Employment Clusters: Agglomeration Economies or Worker Heterogeneity?," Working papers 2007-26, University of Connecticut, Department of Economics, revised Dec 2007. [Downloadable!]
  6. Lehmer, Florian & Ludsteck, Johannes, 2008. "The returns to job mobility and inter-regional migration," IAB Discussion Paper 200806, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
  7. Christopher H. Wheeler, 2004. "Cities, skills, and inequality," Working Papers 2004-020, Federal Reserve Bank of St. Louis. [Downloadable!]
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  8. Donata Bessey & Uschi Backes-Gellner, 2007. "Premature Apprenticeship Terminations: An Economic Analysis," Economics of Education Working Paper Series 0002, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
  9. Tomohiro Machikita, 2004. "Is Learning by Migrating in Megalopolis Really Important?," Econometric Society 2004 Far Eastern Meetings 579, Econometric Society. [Downloadable!]
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  10. Peter Thompson & Mihaela Pintea, 2008. "Sorting, Selection, and Industry Shakeouts," Review of Industrial Organization, Springer, vol. 33(1), pages 23-40, August. [Downloadable!] (restricted)
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  11. Kristian Behrens & Frédéric Robert-Nicoud, 2009. "Survival of the Fittest in Cities: Agglomeration, Polarization, and Income Inequality," Cahiers de recherche 0919, CIRPEE. [Downloadable!]
  12. Halfdanarson, Benedikt & Heuermann, Daniel F. & Suedekum, Jens, 2008. "Human Capital Externalities and the Urban Wage Premium: Two Literatures and their Interrelations," IZA Discussion Papers 3493, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Miles Finney, 2006. "An Empirical Test of Urban Labor Matching," ERSA conference papers ersa06p372, European Regional Science Association. [Downloadable!]
  14. Sabrina Di Addario & Eleonora Patacchini, 2006. "Is there an urban wage premium in Italy?," Temi di discussione (Economic working papers) 570, Bank of Italy, Economic Research Department. [Downloadable!]
  15. Mion, Giordano & Naticchioni, Paolo, 2007. "The spatial sorting and matching of skills and firms," MPRA Paper 1721, University Library of Munich, Germany. [Downloadable!]
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  16. Jeffrey A. Groen, 2005. "Occupation-Specific Human Capital and Local Labor Markets," Working Papers 376, U.S. Bureau of Labor Statistics. [Downloadable!]
  17. Sabrina Di Addario & Eleonora Patacchini, 2007. "Wages and the City. Evidence from Italy," Development Working Papers 231, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
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