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The “Knowledge City” and the “Experience City”: the Main, Mediating, and Moderating Effects of Education on Income and Economic Inequality

Author

Listed:
  • Meir Russ

    (University of Wisconsin-Green Bay)

  • Gaurav Bansal

    (University of Wisconsin-Green Bay)

  • Adam Parrillo

    (University of Wisconsin-Green Bay)

Abstract

The new knowledge economy and the experience economy are the two most recent techno-economic paradigms that appear to guide business executives and economic development practitioners and that frame the research of management and economic development academics. In this paper, we distinguished between knowledge cities and experience cities, and we performed a preliminary study of the association and alternative roles of education with income and inequality within urban areas. Specifically, we analyzed a number of competing models that investigate the main, mediating, and moderating effects of education on income and inequality in urban areas in the USA. Our findings suggest that education has a positive role in increasing income and, more importantly, in reducing inequality when we account for the concentration of knowledge and experience-based industries in the city. Distinctively, it is the knowledge-based sector that contributed significantly to this result.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:jknowl:v:8:y:2017:i:3:d:10.1007_s13132-015-0278-z
    DOI: 10.1007/s13132-015-0278-z
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