Power Couples: Changes in the Locational Choice of the College Educated, 1940-1990

47 Pages Posted: 26 Aug 1999 Last revised: 6 May 2000

See all articles by Dora L. Costa

Dora L. Costa

University of California, Los Angeles (UCLA) - Department of Economics; National Bureau of Economic Research (NBER)

Matthew E. Kahn

University of Southern California; National Bureau of Economic Research (NBER)

Date Written: May 1999

Abstract

The rise of the dual career household is a recent phenomenon spurred by the increase in married women's labor force participation rates and educational attainment rates. Compared to traditional households these households must solve a colocation problem. This paper documents trends in locational choice between large and small metropolitan areas and non-metropolitan areas by household type from 1940 to 1990. We find that college educated couples are increasingly concentrated in large metropolitan areas and attribute at least half of this increase to the growing severity of the colocation problem. We also find that the relative returns for a college-educated couple of being in a large relative to a small city have increased across decades. Our results suggest that because skilled professionals are increasingly bundled with an equally skilled spouse, smaller cities may experience reduced inflows of human capital relative to the past and therefore become poorer. We examine how the relationship between rankings of university graduate programs and city size has changed between 1970 and 1990 to provide suggestive evidence on the importance of city size to firms' ability to attract the best workers.

Suggested Citation

Costa, Dora L. and Kahn, Matthew E., Power Couples: Changes in the Locational Choice of the College Educated, 1940-1990 (May 1999). NBER Working Paper No. w7109. Available at SSRN: https://ssrn.com/abstract=165099

Dora L. Costa (Contact Author)

University of California, Los Angeles (UCLA) - Department of Economics ( email )

Box 951477
Los Angeles, CA 90095-1477
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Matthew E. Kahn

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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