Communication Externalities in Cities
National Institute for Agricultural Research (INRA) - Dijon
London School of Economics & Political Science (LSE) - Department of Geography and Environment; Centre for Economic Policy Research (CEPR)
CEPR Discussion Paper No. 4048
To identify communication externalities in French cities, we exploit a unique survey recording workplace communication of individual workers. Our hypothesis is that in larger and/or more educated cities, workers should communicate more. In turn, more communication should have a positive effect on individual wages. By estimating both an earnings and a communication equation, we find evidence of communication externalities. Being in a larger and more educated city makes workers communicate more and in turn this has a positive effects on wages. Only a small fraction of the overall effects of a more educated and larger city on wages percolates through this channel, however.
Number of Pages in PDF File: 47
Keywords: Human capital, cities, communication externalities
JEL Classification: J31, R19, R29working papers series
Date posted: October 29, 2003
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