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City size and skill intensity

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Listed author(s):
  • Elvery, Joel A.

Abstract

Many have theorized that the productivity of human capital increases with city size. If this were true, one would expect production in large cities to be more skill intensive than in small cities, even within industry. This paper uses data on the occupational mix at establishments to test whether skill intensity is greater in large cities. Establishments in metropolitan areas with population above two million use a more skill intensive mix of workers than comparable establishments in metropolitan areas with population below one million. The differences in skill intensity are not the same in all industries; establishments in relatively skill intensive industries are even more skill intensive in large MSAs. These results support theories that suggest that the productivity gains from agglomeration are larger for skilled labor than unskilled labor.

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File URL: http://www.sciencedirect.com/science/article/pii/S0166-0462(10)00044-X
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Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 40 (2010)
Issue (Month): 6 (November)
Pages: 367-379

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Handle: RePEc:eee:regeco:v:40:y:2010:i:6:p:367-379
Contact details of provider: Web page: http://www.elsevier.com/locate/regec

Keywords: Agglomeration Urban wage premium Occupational mix;

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Cited by:

  1. Vincent Boitier, 2013. "Endogenous city size in urban search models: the case of high reallocation costs," ERSA conference papers ersa13p590, European Regional Science Association.
  2. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, Elsevier.
  3. Dusan Paredes & Marcelo Lufin & Patricio Aroca, 2012. "The estimation of urban premium wage using propensity score analysis: some considerations from the spatial perspective," Documentos de Trabajo en Economia y Ciencia Regional 21, Universidad Catolica del Norte, Chile, Department of Economics, revised Apr 2012.
  4. Aurélie LALANNE (GREThA, CNRS, UMR 5113) & Guillaume POUYANNE ( GREThA, CNRS, UMR 5113), 2012. "Ten years of metropolization in economics: a bibliometric approach (In French)," Cahiers du GREThA 2012-11, Groupe de Recherche en Economie Théorique et Appliquée.
  5. Suzanne Kok & Bas ter Weel, 2014. "Cities, Tasks, And Skills," Journal of Regional Science, Wiley Blackwell, vol. 54(5), pages 856-892, November.
  6. Winters, John V., 2011. "Human capital, higher education institutions, and quality of life," Regional Science and Urban Economics, Elsevier, vol. 41(5), pages 446-454, September.
  7. Anthony M. Yezer & Daniel A. Broxterman, 2014. "Why Does Skill Intensity Vary Across Cities? Housing Cost and True Human Capital," Working Papers 2014-15, The George Washington University, Institute for International Economic Policy.
  8. Winters, John V, 2010. "Human Capital and Population Growth in Non-Metropolitan U.S. Counties: The Importance of College Student Migration," MPRA Paper 25592, University Library of Munich, Germany.
  9. John V. Winters, 2011. "Human Capital and Population Growth in Nonmetropolitan U.S. Counties," Economic Development Quarterly, , vol. 25(4), pages 353-365, November.
  10. Broxterman, Daniel A. & Yezer, Anthony M., 2015. "Why does skill intensity vary across cities? The role of housing cost," Regional Science and Urban Economics, Elsevier, vol. 55(C), pages 14-27.

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