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The Rise of the Skilled City

68 Pages Posted: 30 Jul 2004  

Edward L. Glaeser

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

Albert Saiz

University of Pennsylvania - The Wharton School; IZA Institute of Labor Economics

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Date Written: December 2003

Abstract

For more than a century, educated cities have grown more quickly than comparable cities with less human capital. This fact survives a battery of other control variables, metropolitan area fixed effects and tests for reverse causality. We also find that skilled cities are growing because they are becoming more economically productive (relative to less skilled cities), not because these cities are becoming more attractive places to live. Most surprisingly, we find evidence suggesting that the skills-city growth connection occurs mainly in declining areas and occurs in large part because skilled cities are better at adapting to economic shocks. As in Schultz (1964), skills appear to permit adaptation.

Suggested Citation

Glaeser, Edward L. and Saiz, Albert, The Rise of the Skilled City (December 2003). Harvard Institute of Economic Research Discussion Paper No. 2025; FRB Philadelphia Working Paper No. 04-2. Available at SSRN: https://ssrn.com/abstract=569867 or http://dx.doi.org/10.2139/ssrn.569867

Edward L. Glaeser (Contact Author)

Harvard University - John F. Kennedy School of Government, Department of Economics ( email )

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Albert Saiz

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