Cities and Tasks

64 Pages Posted: 3 Apr 2021

See all articles by Hans Koster

Hans Koster

Vrije Universiteit Amsterdam, School of Business and Economics

Ceren Ozgen

University of Birmingham

Abstract

This paper explores the relationship between routine-biased technological change and agglomeration economies. Using administrative data from the Netherlands, we first show that in dense areas, jobs are less routine-task intensive (i.e. less repetitive and automatable), meaning that jobs cover a larger spectrum of tasks. We then explore how the routine intensity of jobs affects the urban wage premium. We find that the urban wage premium is higher for workers performing non-routine tasks, particularly analytic tasks, while it is absent for workers in routine task intensive jobs. These findings also hold within skill groups and suggest that routinisation increases spatial wage and skill inequality within urban areas. We further provide suggestive evidence that a better matching of skills to jobs and increased learning opportunities in cities can explain these findings.

JEL Classification: R30, R33

Suggested Citation

Koster, Hans and Ozgen, Ceren, Cities and Tasks. IZA Discussion Paper No. 14231, Available at SSRN: https://ssrn.com/abstract=3818641 or http://dx.doi.org/10.2139/ssrn.3818641

Hans Koster (Contact Author)

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands

Ceren Ozgen

University of Birmingham ( email )

Department of Economics
Birmingham, B15 2TT
United Kingdom

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