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What’s In a City?: Understanding the Micro-Level Employer Dynamics Underlying Urban Growth

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  • R. Jason Faberman

    ()
    (U.S. Bureau of Labor Statistics)

Abstract

This paper synthesizes the literatures on labor dynamics and urban growth and agglomeration by presenting new evidence on the micro-level establishment dynamics of metropolitan areas. I explore how the patterns of job reallocation and entry and exit affect the growth and composition of these areas. I find that high-growth metropolitan areas have high rates of job and establishment turnover, primarily though higher rates of gross job creation and establishment entry, and have a relatively young distribution of establishments. Variations in the age distribution and differences in the entry and exit patterns of young establishments account for a sizeable portion of regional differences in labor dynamics and growth, even after controlling for regional differences in industry composition. These results suggest that variations in the age distribution and the dynamics that lead to such variations are important factors in understanding urban growth and agglomeration.

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Bibliographic Info

Paper provided by U.S. Bureau of Labor Statistics in its series Working Papers with number 386.

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Length: 37 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:bls:wpaper:ec050120

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Keywords: Job Reallocation; Urban Growth and Agglomeration; Firm Dynamics;

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References

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Citations

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Cited by:
  1. Rui Baptista & Joana Mendonça, 2010. "Proximity to knowledge sources and the location of knowledge-based start-ups," The Annals of Regional Science, Springer, vol. 45(1), pages 5-29, August.
  2. John Francis, 2009. "Agglomeration, job flows and unemployment," The Annals of Regional Science, Springer, vol. 43(1), pages 181-198, March.
  3. de la Garza, Adrián G., 2008. "Do smart cities grow faster?," MPRA Paper 10881, University Library of Munich, Germany.
  4. Gilles Duranton, 2011. "California Dreamin': The Feeble Case for Cluster Policies," Review of Economic Analysis, Rimini Centre for Economic Analysis, vol. 3(1), pages 3-45, July.

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