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Communication Externalities in Cities

  • Sylvie Charlot
  • Gilles Duranton

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. However, only a small fraction of the overall effects of a more educated and larger city on wages 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
Contact details of provider: Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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