Working Paper: NBER ID: w18715
Authors: Guy Michaels; Ferdinand Rauch; Stephen J. Redding
Abstract: We develop a new methodology for quantifying the tasks undertaken within occupations using over 3,000 verbs from more than 12,000 occupational descriptions in the Dictionary of Occupational Titles (DOTs). Using micro-data from the United States from 1880-2000, we find an increase in the employment share of interactive occupations within sectors over time that is larger in metro areas than non-metro areas. We interpret these findings using a model in which reductions in transport and communication costs induce urban areas to specialize according to their comparative advantage in interactive tasks. We presenting suggestive evidence relating increases in employment in interactive occupations to improvements in transport and communication technologies. Our findings highlight a change in the nature of agglomeration over time towards an increased emphasis on human interaction.
Keywords: Task Specialization; Urban Economics; Transport Technology; Communication Technology
JEL Codes: N92; O18; R12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| reductions in transport and communication costs (F12) | increase in the employment share of interactive occupations in urban areas (J69) |
| improvements in communication technologies (L96) | facilitate greater human interaction within densely populated areas (R23) |
| improvements in transport infrastructure (R42) | facilitate greater human interaction within densely populated areas (R23) |
| historical advancements in communication and transportation technologies (L96) | changes in interactiveness (O36) |
| changes in interactiveness (O36) | job specialization in interactive tasks in urban settings (J29) |
| employment in interactive occupations has grown significantly faster in metro areas compared to nonmetro areas (R23) | higher concentration of interactive occupations in metro areas than nonmetro areas by 2000 (R23) |