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Communication Externalities in Cities

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  • Duranton, Gilles
  • Charlot, Sylvie

Abstract

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.

Suggested Citation

  • Duranton, Gilles & Charlot, Sylvie, 2003. "Communication Externalities in Cities," CEPR Discussion Papers 4048, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:4048
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    Keywords

    R19 r29; Human capital; Cities; Communication externalities;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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