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Communication Externalities in Cities

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Author Info
Sylvie Charlot
Gilles Duranton

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Abstract

To identify communication externalities in French cities, we exploit a unique survey recording workplacecommunication of individual workers. Our hypothesis is that in larger and/or more educated cities, workersshould communicate more. In turn, more communication should have a positive effect on individual wages. Byestimating 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 positiveeffects on wages. However, only a small fraction of the overall effects of a more educated and larger city onwages percolates through this channel.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0592.

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Date of creation: Nov 2003
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Handle: RePEc:cep:cepdps:dp0592

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Related research
Keywords: human capital; cities; communication externalities;

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
R19 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Other
R29 - Urban, Rural, and Regional Economics - - Household Analysis - - - Other

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Shihe Fu, 2005. "Smart Cafe Cities: Testing Human Capital Externalities in the Boston Metropolitan Area," Working Papers 05-24, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  2. Nobuaki Hamaguchi & Yoshihiro Kameyama, 2006. "Communication Externalities on the Knowledge-based Firms in Metropolitan Areas: Case Study of China and Korea," Discussion Paper Series 182, Research Institute for Economics & Business Administration, Kobe University. [Downloadable!]
  3. Rainald Borck, 2005. "Social Agglomeration Externalities," Discussion Papers of DIW Berlin 505, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  4. Guido de Blasio, 2006. "Production or consumption? Disentangling the skill-agglomeration connection," Temi di discussione (Economic working papers) 571, Bank of Italy, Economic Research Department. [Downloadable!]
  5. Guido De Blasio, 2005. "Production Or Consumption? Disentangling The Skill-Agglomeration Connection," ERSA conference papers ersa05p648, European Regional Science Association. [Downloadable!]
  6. Daniel F. Heuermann, 2009. "Career Networks and Job Matching - Evidence on the Microeconomic Foundations of Human Capital Externalities," Discussion Papers 200901, Institute of Labour Law and Industrial Relations in the European Community (IAAEG). [Downloadable!]
  7. Diego Puga, 2009. "The magnitude and causes of agglomeration economies," Working Papers 2009-09, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales. [Downloadable!]
  8. Alberto Dalmazzo & Guido Blasio, 2007. "Production and consumption externalities of human capital: an empirical study for Italy," Journal of Population Economics, Springer, vol. 20(2), pages 359-382, April. [Downloadable!] (restricted)
  9. Alberto Dalmazzo & Guido Blasio, 2007. "Social returns to education in Italian local labor markets," The Annals of Regional Science, Springer, vol. 41(1), pages 51-69, March. [Downloadable!] (restricted)
  10. 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!]
  11. Douglas J. Krupka, 2007. "City Air or City Markets: Productivity Gains in Urban Areas," IZA Discussion Papers 3230, Institute for the Study of Labor (IZA). [Downloadable!]
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