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Does culture affect local productivity and urban amenities?

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  • Boualam, Brahim

Abstract

Does a better cultural milieu make a city more livable for residents and improve its business environment for firms? I compute a measure of cultural specialization for 346 U.S. metropolitan areas and ask if differences in cultural environment across cities capitalize into housing price and wage differentials. Simple correlations replicate standard results from the literature: cities that are more specialized in cultural occupations enjoy higher factor prices. Estimations using time-series data, controlling for city characteristics and correcting for endogeneity weaken the magnitude of this effect. Even though the arts and culture might be appealing to some people and firms, such determinants are not strong enough to affect factor prices at the city level.

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  • Boualam, Brahim, 2014. "Does culture affect local productivity and urban amenities?," Regional Science and Urban Economics, Elsevier, vol. 46(C), pages 12-17.
    • Handle: RePEc:eee:regeco:v:46:y:2014:i:c:p:12-17
    DOI: 10.1016/j.regsciurbeco.2014.01.008
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    11. Erdem Ucar, 2019. "Creative culture, risk‐taking, and corporate financial decisions," European Financial Management, European Financial Management Association, vol. 25(3), pages 684-717, June.
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    14. Joséphine Leuba, 2019. "Natural amenities and the spatial distribution of Swiss income," IRENE Working Papers 19-04, IRENE Institute of Economic Research.
    15. Fredrik Carlsen & Stefan Leknes, 2019. "The paradox of the unhappy, growing city: reconciling evidence," Discussion Papers 907, Statistics Norway, Research Department.
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    20. Tao, Jin & Ho, Chun-Yu & Luo, Shougui & Sheng, Yue, 2019. "Agglomeration economies in creative industries," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 141-154.

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