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Educational Attainment and Metropolitan Growth

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  • Paul D. Gottlieb
  • Michael Fogarty

Abstract

This study explores the relationship between educational attainment at the bachelor’s degree level and subsequent economic growth in U.S. metropolitan areas. It reviews the theoretical literature in human capital that predicts faster productivity and income growth in cities that have high education levels and numerous opportunities for inter- action among skilled workers. In this study, the authors found that there was a significant relationship between educational attainment in 1980 and the rate of per capita income and employment growth during the next 17 years. We found some evidence of divergence in the incomes of the most- and least-educated metros, raising the prospect of a new inequality across U.S. regions driven by cumulative differences in human cap- ital stocks. The study lists several possible causes of high educational attainment in metropolitan areas, concluding that this is a difficult but nevertheless worthwhile instrumental goal for policy makers.

Suggested Citation

  • Paul D. Gottlieb & Michael Fogarty, 2003. "Educational Attainment and Metropolitan Growth," Economic Development Quarterly, , vol. 17(4), pages 325-336, November.
    • Handle: RePEc:sae:ecdequ:v:17:y:2003:i:4:p:325-336
    DOI: 10.1177/0891242403257274
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    References listed on IDEAS

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    1. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November.
    2. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-342, April.
    3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    4. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
    5. Romer, Paul M, 1990. "Are Nonconvexities Important for Understanding Growth?," American Economic Review, American Economic Association, vol. 80(2), pages 97-103, May.
    6. Simon, Curtis J., 1998. "Human Capital and Metropolitan Employment Growth," Journal of Urban Economics, Elsevier, vol. 43(2), pages 223-243, March.
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    Cited by:

    1. Heather M. Stephens, 2019. "Understanding US college graduate migration," Journal of Geographical Systems, Springer, vol. 21(4), pages 509-531, December.
    2. William M. Bowen & Haifeng Qian, 2017. "State spending for higher education: Does it improve economic performance?," Regional Science Policy & Practice, Wiley Blackwell, vol. 9(1), pages 7-23, March.
    3. Nathanael D. Peach & Luke A. Petach, 2016. "Development and Quality of Life in Cities," Economic Development Quarterly, , vol. 30(1), pages 32-45, February.
    4. Leticia Fernández & Cheryl Howard & Jon Amastae, 2007. "Education, race/ethnicity and out-migration from a border city," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 26(1), pages 103-124, February.
    5. Meir Russ & Gaurav Bansal & Adam Parrillo, 2017. "The “Knowledge City” and the “Experience City”: the Main, Mediating, and Moderating Effects of Education on Income and Economic Inequality," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(3), pages 804-829, September.
    6. Timothy J. Bartik & George Erickcek, 2007. "Higher Education, the Health Care Industry, and Metropolitan Regional Economic Development: What Can “Eds & Meds” Do for the Economic Fortunes of a Metro Area’s Residents?," Upjohn Working Papers 08-140, W.E. Upjohn Institute for Employment Research.

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