Working Paper: NBER ID: w11617
Authors: Christopher R. Berry; Edward L. Glaeser
Abstract: Over the past 30 years, the share of adult populations with college degrees increased more in cities with higher initial schooling levels than in initially less educated places. This tendency appears to be driven by shifts in labor demand as there is an increasing wage premium for skilled people working in skilled cities. In this paper, we present a model where the clustering of skilled people in metropolitan areas is driven by the tendency of skilled entrepreneurs to innovate in ways that employ other skilled people and by the elasticity of housing supply.
Keywords: No keywords provided
JEL Codes: J0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| initial education levels (I24) | skill growth (J24) |
| initial share of adults with college degrees in the 1990s (I24) | growth of share of college graduates by 2000 (F62) |
| managerial education (M53) | worker skills (J24) |
| skill divergence (J24) | income inequality across cities (D31) |