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Cities and Skills

Edward L. Glaeser^1,2; David C. Maré³

¹ National Bureau of Economic Research · ² Harvard University · ³ New Zealand Department of Labour

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. Copyright 2001 by University of Chicago Press.

DOI

10.1086/319563

Volume

19 (2)

Pages

316-342

Language

en

Export

BibTeX

Sources

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