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Do Amenities and Diversity Encourage City Growth? A Link Through Skilled Labor

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  • Steven Poelhekke

Abstract

The share of skilled workers in urban populations has steadily increased since 1970 in US metropolitan areas, but more in some cities than in others. A higher concentration of skills is a sought after asset for cities as it affects population growth positively, also when the initial share is instrumented for by using land-grant colleges. However, skilled cities may attract more skilled workers, but not because they are more skilled initially: increasing returns are rejected when controlling for fixed effects and bias due to inclusion of a lagged dependent variable. Several amenities such as a low-skilled personal service sector do affect the concentration of skills positively. Although firms seem to benefit from externalities, there is no convincing case for an effect on the concentration of college graduates in a city.

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Bibliographic Info

Paper provided by European University Institute in its series Economics Working Papers with number ECO2006/10.

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Date of creation: 2006
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Handle: RePEc:eui:euiwps:eco2006/10

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Keywords: urban and city growth; human capital; skills; spillovers; externalities; concentration; diversity; amenities;

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Cited by:
  1. Ritashree Chakrabarti & Junfu Zhang, 2010. "Unaffordable housing and local employment growth," New England Public Policy Center Working Paper 10-3, Federal Reserve Bank of Boston.
  2. Caragliu, A. & Del Bo, C. & Nijkamp, P., 2009. "Smart cities in Europe," Serie Research Memoranda 0048, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.

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