The Divergence of Human Capital Levels across Cities

53 Pages Posted: 30 Aug 2005  

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)

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Date Written: September 2005

Abstract

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.

Suggested Citation

Berry, Christopher R. and Glaeser, Edward L., The Divergence of Human Capital Levels across Cities (September 2005). ; Harvard Institute of Economic Research Discussion Paper No. 2091. Available at SSRN: https://ssrn.com/abstract=794551 or http://dx.doi.org/10.2139/ssrn.794551

Christopher R. Berry

University of Chicago - Irving B. Harris Graduate School of Public Policy Studies ( email )

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Edward L. Glaeser (Contact Author)

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

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