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Jobs and Land Use within Cities: A Survey of Theory, Evidence, and Policy

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  • Arti Grover Goswami
  • Somik V Lall

Abstract

Over the last century, the urban spatial structure of cities has transformed dramatically from a traditional monocentric configuration to varying forms of decentralized organization. This paper reviews theory and empirical evidence to understand the urban morphology of jobs and land use within a city. Our survey highlights four broad insights: (i) The evolution of monocentric to polycentric centers have been accompanied by structural changes within the city. (ii) The internal geography of a city is an outcome of the trade-off between the pull from agglomeration economies and the push from congestion. (iii) The presence of externalities implies that the equilibrium spatial organization achieved by profit-maximizing firms may not necessarily be optimal. This justifies the role of public policy in addressing associated market failures. (iv) The productive edge and competitiveness of a city can be enhanced by introducing policies that increase the overall connectivity to take advantage of economic opportunities across the metropolitan area. The survey also puts together a wide range of policy instruments useful in closing the gap between equilibrium urban spatial structures and the optimal outcome.

Suggested Citation

  • Arti Grover Goswami & Somik V Lall, 2019. "Jobs and Land Use within Cities: A Survey of Theory, Evidence, and Policy," The World Bank Research Observer, World Bank, vol. 34(2), pages 198-238.
    • Handle: RePEc:oup:wbrobs:v:34:y:2019:i:2:p:198-238.
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    File URL: http://hdl.handle.net/10.1093/wbro/lkz004
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    1. Sullivan, Arthur M., 1986. "A general equilibrium model with agglomerative economies and decentralized employment," Journal of Urban Economics, Elsevier, vol. 20(1), pages 55-74, July.
    2. Chatterjee, Satyajit & Carlino, Gerald A., 2001. "Aggregate metropolitan employment growth and the deconcentration of metropolitan employment," Journal of Monetary Economics, Elsevier, vol. 48(3), pages 549-583, December.
    3. De Silva, Dakshina G. & McComb, Robert P., 2011. "Geographic concentration and firm survival," MPRA Paper 32906, University Library of Munich, Germany.
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    Cited by:

    1. Henderson, J. Vernon & Liu, Vivian, 2023. "Urban land markets and city development: Sub-Saharan Africa," LSE Research Online Documents on Economics 119388, London School of Economics and Political Science, LSE Library.
    2. Daniel Straulino & Juan C. Saldarriaga & Jairo A. G'omez & Juan C. Duque & Neave O'Clery, 2021. "Uncovering commercial activity in informal cities," Papers 2104.04545, arXiv.org.

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