Working Paper: NBER ID: w23279
Authors: Edward L. Glaeser; Wentao Xiong
Abstract: Africa is urbanizing rapidly, and this creates both opportunities and challenges. Labor productivity appears to be much higher in developing-world cities than in rural areas, and historically urbanization is strongly correlated with economic growth. Education seems to be a strong complement to urbanization, and entrepreneurial human capital correlates strongly with urban success. Immigrants provide a natural source of entrepreneurship, both in the U.S. and in Africa, which suggests that making African cities more livable can generate economic benefits by attracting talent. Reducing the negative externalities of urban life requires a combination of infrastructure, incentives, and institutions. Appropriate institutions can mean independent public authorities, public-private partnerships, and non-profit entities depending on the setting.
Keywords: No keywords provided
JEL Codes: L26; O18; R00
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| urbanization (R11) | labor productivity (J24) |
| urbanization (R11) | wages (J31) |
| education (I29) | labor productivity (J24) |
| urbanization + education (I25) | productivity (O49) |
| urbanization (R11) | entrepreneurship (M13) |
| agglomeration economies (R11) | productivity (O49) |
| urbanization (R11) | urban wage premium (J31) |
| urban infrastructure improvements (R42) | urbanization benefits (R11) |