Working Paper: NBER ID: w15103
Authors: 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.
Keywords: agglomeration economies; urban productivity; human capital
JEL Codes: D0; R0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| urban density (R11) | worker skills (J24) |
| urban density (R11) | entrepreneur productivity (O49) |
| skilled individuals (J24) | larger cities (R12) |
| workers in skilled metropolitan areas (J69) | learning effects (C92) |
| city size and human capital (R12) | mechanisms of productivity (O49) |
| metropolitan area population (R23) | per worker productivity (J29) |
| human capital (J24) | per worker productivity (J29) |
| city size (R12) | productivity-population elasticity (J11) |