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The Divergence of Human Capital Levels across Cities

Christopher R. Berry
University of Chicago - Irving B. Harris Graduate School of Public Policy Studies

Edward L. Glaeser
Harvard University - John F. Kennedy School of Government, Department of Economics; Brookings Institution; National Bureau of Economic Research (NBER)

September 2005

KSG Working Paper No. RWP05-057
Harvard Institute of Economic Research Discussion Paper No. 2091

Abstract:
Over the past 30 years, the share of adult populations with college degrees increased more in cities with higher initial schooling levels than in initially less educated places. This tendency appears to be driven by shifts in labor demand as there is an increasing wage premium for skilled people working in skilled cities. In this paper, we present a model where the clustering of skilled people in metropolitan areas is driven by the tendency of skilled entrepreneurs to innovate in ways that employ other skilled people and by the elasticity of housing supply.

Working Paper Series

Date posted: August 30, 2005 ; Last revised: November 17, 2005

Suggested Citation

Berry, Christopher R. and Glaeser, Edward L., The Divergence of Human Capital Levels across Cities (September 2005). ; Harvard Institute of Economic Research Discussion Paper No. 2091. Available at SSRN: http://ssrn.com/abstract=794551

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Contact Information

Edward L. Glaeser (Contact Author) Harvard University - John F. Kennedy School of Government, Department of Economics ( email ) Littauer Center Room 315A Cambridge, MA 02138 United States 617-496-2150 (Phone) 617-496-1722 (Fax)
Brookings Institution 1775 Massachusetts Ave. NW Washington, DC 20036-2188 United States
National Bureau of Economic Research (NBER) 1050 Massachusetts Avenue Cambridge, MA 02138 United States
Christopher R. Berry University of Chicago - Irving B. Harris Graduate School of Public Policy Studies ( email ) 1155 East 60th Street Chicago, IL 60637 United States