Cities and Skills

Posted: 3 Aug 2006

See all articles by Edward L. Glaeser

Edward L. Glaeser

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

David C. Maré

Motu Economic and Public Policy Research Trust; University of Waikato - Economics

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Abstract

Workers in cities earn 33% more than their nonurban counterparts. A large amount of evidence suggests that this premium is not just the result of higher ability workers living in cities, which means that cities make workers more productive. Evidence on migrants and the cross effect between urban status and experience implies that a significant fraction of the urban wage premium accrues to workers over time and stays with them when they leave cities. Therefore, a portion of the urban wage premium is a wage growth, not a wage level, effect. This evidence suggests that cities speed the accumulation of human capital.

JEL Classification: R1, J3

Suggested Citation

Glaeser, Edward L. and Maré, David C., Cities and Skills. Journal of Labor Economics, Vol. 19, No. 2, 2001. Available at SSRN: https://ssrn.com/abstract=920975

Edward L. Glaeser

Harvard University - Department of Economics ( email )

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Brookings Institution

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National Bureau of Economic Research (NBER)

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David C. Maré (Contact Author)

Motu Economic and Public Policy Research Trust ( email )

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HOME PAGE: http://www.motu.org.nz

University of Waikato - Economics

New Zealand

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