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Cities and Skills
TL;DR: This article examined the productivity and wage gains from locating in dense, urban environments and found that the urban wage premium does not represent omitted ability bias and it is only in part a level effect to productivity.
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Abstract: This paper examines the productivity (and wage) gains from locating in dense, urban environments. We distinguish between three potential explanations of why firms are willing to pay urban workers more: (1) the urban wage premium is spurious and is the result of omitted ability measures, (2) the urban wage premium works because cities enhance productivity and (3) the urban wage premium is the result of faster skill accumulation in cities. Using a combination of standard regressions, individual fixed effects estimation (using migrants) and instrumental variables methods, we find that the urban wage premium does not represent omitted ability bias and it is only in part a level effect to productivity. The bulk of the urban wage premium accrues over time as a result of greater skill accumulation in cities.
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Citations
Casinos as an Economic Development Strategy in the Prairie Provinces of Canada
Philippe Cyrenne,Hugh Grant,Jacqueline Romanow +2 more
TL;DR: L'impact des casinos sur l'emploi en Alberta et au Saskatchewan est limité et ne suit pas les tendances parallèles. Il n'est pas possible de déterminer les avantages des casinos des Premières Nations pour les membres des Premières Nations.
Dynamic agglomeration effects of foreigners and natives – The role of experience in high-quality sectors, tasks and establishments
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Entwicklung und Determinanten des Produktivitätsgefälles zwischen den Ballungsräumen der USA 1969 - 2005
Kurt Geppert,Rolf-Dieter Postlep +1 more
- 01 Jan 2011
TL;DR: In this article, a vorliegende Beitrag liefert keine Hinweise auf eine Tendenz der raumlichen Dezentralisierung der Wirtschaft, sie deutet eher in die entgegen gesetzte Richtung, sind aber the hierarchischen Abstufungen im Produktivitatsniveau zwischen these regions noch erheblich groser geworden.
Local Labor Markets in Canada and the United States
TL;DR: This article examined local labor markets in the United States and Canada from 1990 to 2011 using comparable household and business data and found that wage levels and inequality rise with city population in both countries, albeit less in Canada.
Space and technology in catching-up economies: “the city as a laboratory for innovation”
05 Mar 2024
TL;DR: Catching-up economies exhibit rapid skilled labor growth, industrial upgrading, and spatial concentration, driven by skill-city complementarity and knowledge spillovers, which foster innovation and growth through efficient urban spatial concentration and ability sorting.
References
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Robert E. Lucas
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Increasing Returns and Economic Geography
TL;DR: This paper developed a simple model that shows how a country can endogenously become differentiated into an industrialized core and an agricultural periphery, in which manufacturing firms tend to locate in the region with larger demand, but the location of demand itself depends on the distribution of manufacturing.
Economic Growth and Income Inequality
TL;DR: The process of industrialization engenders increasing income inequality as the labor force shifts from low-income agriculture to the high income sectors as mentioned in this paper, and on more advanced levels of development inequality starts decreasing and industrialized countries are again characterized by low inequality due to the smaller weight of agriculture in production and income generation.
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