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Productivity in cities: self-selection and sorting

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  • Tony Venables

Abstract

Productivity is high in cities partly because the urban environment acts as a self-selection mechanism.� If workers have imperfect information about the quality of workers with whom they match and matches take place within cities, then high-ability workers will choose to live and work in expensive cities.� This self-selection improves the quality of matches in such cities.� The mechanism may be reinforced by the development of informational networks in cities with a large proportion of high ability workers.� As a consequence productivity in these cities is high for workers of all ability types.

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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 507.

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Date of creation: 01 Oct 2010
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Handle: RePEc:oxf:wpaper:507

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Keywords: economic geography; productivity; city; urban; sorting; self-selection;

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Cited by:
  1. Suzanne Kok, 2014. "Matching worker skills to job tasks in the Netherlands: sorting into cities for better careers," IZA Journal of European Labor Studies, Springer, Springer, vol. 3(1), pages 1-36, December.
  2. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent & Roux, Sébastien, 2012. "Sorting and Local Wage and Skill Distributions in France," IZA Discussion Papers 6501, Institute for the Study of Labor (IZA).
  3. Suzanne Kok, 2013. "Matching worker skills to job tasks in the Netherlands: Sorting into cities for better careers," CPB Discussion Paper 247, CPB Netherlands Bureau for Economic Policy Analysis.
  4. Suzanne Kok, 2013. "Town and city jobs: Your job is different in another location," CPB Discussion Paper 246, CPB Netherlands Bureau for Economic Policy Analysis.
  5. Yip, Chi Man, 2011. "Size and The City: Productivity, Match Quality and Wage Inequality," MPRA Paper 31255, University Library of Munich, Germany.
  6. Monica Andini & Guido de Blasio & Gilles Duranton & William C. Strange, 2013. "Marshallian labor market pooling: evidence from Italy," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area 922, Bank of Italy, Economic Research and International Relations Area.
  7. Bernard Fingleton & Simonetta Longhi, 2011. "The Effects of Agglomeration on Wages: Evidence from the Micro-Level," SERC Discussion Papers 0081, Spatial Economics Research Centre, LSE.
  8. Fabien CANDAU & Elisa DIENESCH, 2013. "Globalization, Spatial Sorting and the Geography of Education," Working Papers 2012-2013_7, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Dec 2013.
  9. Kok, Suzanne & ter Weel, Bas, 2014. "Cities, Tasks and Skills," IZA Discussion Papers 8053, Institute for the Study of Labor (IZA).
  10. Suzanne Kok & Bas ter Weel, 2014. "Cities, Tasks and Skills," CPB Discussion Paper 269, CPB Netherlands Bureau for Economic Policy Analysis.
  11. HÃ¥kansson, Johan & Isacsson, Gunnar, 2013. "How Does Employment Density Influence Individuals' Wages? A Micro Data Approach," HUI Working Papers, HUI Research 97, HUI Research.

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