Economic Growth in a Cross-Section of Cities

35 Pages Posted: 26 Jul 2000 Last revised: 20 Sep 2010

See all articles by Edward L. Glaeser

Edward L. Glaeser

Harvard University - Department of Economics; Brookings Institution; National Bureau of Economic Research (NBER)

José Scheinkman

Columbia University; Princeton University - Department of Economics; National Bureau of Economic Research (NBER)

Andrei Shleifer

Harvard University - Department of Economics; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)

Date Written: February 1995

Abstract

We examine the relationship between urban characteristics in 1960 and urban growth (income and population) between 1960 and 1990. Our major findings are that income and population growth move together and both types of growth are (1) positively related to initial schooling, (2) negatively related to initial unemployment and (3) negatively related to the share of employment initially in manufacturing. These results are qualitatively unchanged if we examine cities (a smaller political unit) or SMSAs (a larger 'economic' unit). We also find that racial composition and segregation are basically uncorrelated with urban growth across all cities, but that in communities with large nonwhite communities segregation is positively correlated with white population growth. Government expenditures (except for sanitation) are uncorrelated with urban growth. Government debt is positively correlated with later growth.

Suggested Citation

Glaeser, Edward L. and Scheinkman, José and Shleifer, Andrei, Economic Growth in a Cross-Section of Cities (February 1995). NBER Working Paper No. w5013. Available at SSRN: https://ssrn.com/abstract=225792

Edward L. Glaeser (Contact Author)

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José Scheinkman

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Andrei Shleifer

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