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The Complementarity between Cities and Skills

Author

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  • Edward L. Glaeser
  • Matthew G. Resseger

Abstract

There is a strong connection between per worker productivity and metropolitan area population, which is commonly interpreted as evidence for the existence of agglomeration economies. This correlation is particularly strong in cities with higher levels of skill and virtually non-existent in less skilled metropolitan areas. This fact is particularly compatible with the view that urban density is important because proximity spreads knowledge, which either makes workers more skilled or entrepreneurs more productive. Bigger cities certainly attract more skilled workers, and there is some evidence suggesting that human capital accumulates more quickly in urban areas.

Suggested Citation

  • Edward L. Glaeser & Matthew G. Resseger, 2009. "The Complementarity between Cities and Skills," NBER Working Papers 15103, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:15103
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    Citations

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    Cited by:

    1. Ron Boschma & Rikard H. Eriksson & Urban Lindgren, 2014. "Labour Market Externalities and Regional Growth in Sweden: The Importance of Labour Mobility between Skill-Related Industries," Regional Studies, Taylor & Francis Journals, vol. 48(10), pages 1669-1690, October.
    2. Guy Michaels & Ferdinand Rauch & Stephen J Redding, 2019. "Task Specialization in U.S. Cities from 1880 to 2000," Journal of the European Economic Association, European Economic Association, vol. 17(3), pages 754-798.
    3. Yu Peng Lin, 2015. "Don'T Put All Your Eggs On One Basket: The Lesson From Detroit'S Bankruptcy," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 1-20.
    4. Bruno Chiarini & Elisabetta Marzano, 2014. "Urbanization and Growth: Why Did the Splendor of the Italian Cities in the Sixteenth Century not Lead to Transition?," CESifo Working Paper Series 5038, CESifo.
    5. Maxwell Hartt, 2018. "The diversity of North American shrinking cities," Urban Studies, Urban Studies Journal Limited, vol. 55(13), pages 2946-2959, October.
    6. Casey Dougal & Christopher A. Parsons & Sheridan Titman, 2014. "Urban Vibrancy and Corporate Growth," NBER Working Papers 20350, National Bureau of Economic Research, Inc.
    7. Dusan Paredes & Marcelo Lufin & Patricio Aroca, 2012. "The Estimation of Urban Premium Wage Using Propensity Score Analysis: Some Considerations from the Spatial Perspective," Advances in Spatial Science, in: Esteban Fernández Vázquez & Fernando Rubiera Morollón (ed.), Defining the Spatial Scale in Modern Regional Analysis, edition 127, chapter 0, pages 215-236, Springer.
    8. Riccardo Cappelli & Ron Boschma & Anet Weterings, 2019. "Labour mobility, skill-relatedness and new plant survival across different development stages of an industry," Environment and Planning A, , vol. 51(4), pages 869-890, June.
    9. Edyta Laszkiewicz, 2016. "Determinants Of Hourly Wages Inequality In Selected European Metropolises. The Results From The Multilevel Modelling," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(4), pages 853-869, December.
    10. Ron Boschma & Riccardo Cappelli & Anet Weterings, 2017. "Labour mobility, skill-relatedness and plant survival over the industry life cycle: Evidence from new Dutch plants," Papers in Evolutionary Economic Geography (PEEG) 1731, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2017.
    11. Alberto Dalmazzo & Guido de Blasio, 2011. "Amenities and skill‐biased agglomeration effects: Some results on Italian cities," Papers in Regional Science, Wiley Blackwell, vol. 90(3), pages 503-527, August.

    More about this item

    JEL classification:

    • D0 - Microeconomics - - General
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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