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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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File URL: http://eprints.lse.ac.uk/20016/
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Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 20016.

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Length: 46 pages
Date of creation: Nov 2003
Date of revision:
Handle: RePEc:ehl:lserod:20016
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