Working Paper: NBER ID: w11839
Authors: Esteban Rossi-Hansberg; Pierre-Daniel Sarte; Raymond Owens III
Abstract: We document several empirical regularities regarding the evolution of urban structure in the largest U.S. metropolitan areas over the period 1980-1990. These regularities relate to changes in resident population, employment, occupations, as well as the number and size of establishments in different sections of the metropolitan area. We then propose a theory of urban structure that emphasizes the location and internal structure decisions of firms. In particular, firms can decide to locate their headquarters and operation plants in different regions of the city. Given that cities experienced positive population growth throughout the 1980s, we show that firm fragmentation produces the diverse set of facts documented in the paper.
Keywords: No keywords provided
JEL Codes: R12; R14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Population Growth (J11) | Changes in Urban Structure (R11) |
| Population Growth (J11) | Employment Distribution (D39) |
| Firm Fragmentation (F12) | Employment Distribution (D39) |
| Firm Fragmentation (F12) | Changes in Establishment Sizes (L25) |
| Managerial Employment (M51) | Establishment Size (L25) |
| Managerial Concentration at the Center (L22) | Ratio of Managers to Non-Managers (J29) |
| Establishment Growth (L25) | Number of Establishments (D20) |