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Communication Externalities in Cities

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Author Info
Charlot, Sylvie
Duranton, Gilles

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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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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4048.

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Date of creation: Sep 2003
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Handle: RePEc:cpr:ceprdp:4048

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Related research
Keywords: cities; communication externalities; human capital; R19 R29;

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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

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References listed on IDEAS
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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. 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!]
  2. 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!]
  3. Guido De Blasio, 2005. "Production Or Consumption? Disentangling The Skill-Agglomeration Connection," ERSA conference papers ersa05p648, European Regional Science Association. [Downloadable!]
  4. 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!]
  5. 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)
  6. 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)
  7. 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!]
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  8. Rainald Borck, 2005. "Social Agglomeration Externalities," Discussion Papers of DIW Berlin 505, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  9. Diego Puga, 2009. "The magnitude and causes of agglomeration economies," Working Papers 2009-09, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales. [Downloadable!]
  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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