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)
KSG Working Paper No. RWP05-057
Harvard Institute of Economic Research Discussion Paper No. 2091
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.
Number of Pages in PDF File: 53working papers series
Date posted: August 30, 2005
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