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Communication Externalities in Cities

  • Charlot, Sylvie
  • Duranton, Gilles

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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