City Air or City Markets: Productivity Gains in Urban Areas
Persistent productivity gains to rural-urban migrants have been documented by a number of researchers. One interpretation of this result is that individuals learn higher value skills in cities than they would have learned in less dense areas. Another explanation for this result, however, is that thicker urban labor markets allow for better matches, which are realized slowly through a process of subsequent job searches. Surprisingly, there has been no empirical test of these two interpretations to this date. This paper uses NLSY79 geocode data to assess whether wage growth of urban workers is due primarily to time spent in the urban environment (and thus learning), or job changes. The evidence suggests that both these processes are probably at work.
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References listed on IDEAS
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- Charlot, Sylvie & Duranton, Gilles, 2004.
"Communication externalities in cities,"
Journal of Urban Economics,
Elsevier, vol. 56(3), pages 581-613, November.
- Charlot, Sylvie & Duranton, Gilles, 2003. "Communication externalities in cities," LSE Research Online Documents on Economics 20016, London School of Economics and Political Science, LSE Library.
- Sylvie Charlot & Gilles Duranton, 2003. "Communication Externalities in Cities," CEP Discussion Papers dp0592, Centre for Economic Performance, LSE.
- Charlot, Sylvie & Duranton, Gilles, 2003. "Communication Externalities in Cities," CEPR Discussion Papers 4048, C.E.P.R. Discussion Papers.
- Helsley, Robert W. & Strange, William C., 1990. "Matching and agglomeration economies in a system of cities," Regional Science and Urban Economics, Elsevier, vol. 20(2), pages 189-212, September.
- Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
- Holtz-Eakin, Douglas & Lovely, Mary E., 1996. "Scale economies, returns to variety, and the productivity of public infrastructure," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 105-123, April.Full references (including those not matched with items on IDEAS)
- Douglas Holtz-Eakin & Mary E. Lovely, 1995. "Scale Economies, Returns to Variety, and the Productivity of Public Infrastructure," NBER Working Papers 5295, National Bureau of Economic Research, Inc.
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