The Divergence of Human Capital Levels Across Cities

Christopher R. Berry · Edward L. Glaeser

77 citations0/0 files storedNational Bureau of Economic Research

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Regional Economics and Spatial Analysis Labor market dynamics and wage inequality Economic Growth and Productivity

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.

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References

1988On the mechanics of economic development 1992Changes in Relative Wages, 1963-1987: Supply and Demand Factors 1998Computing Inequality: Have Computers Changed the Labor Market?1993Population Growth and Technological Change: One Million B.C. to 1990 1997Computing Inequality: Have Computers Changed the Labor Market?2001Nursery Cities: Urban Diversity, Process Innovation, and the Life Cycle of Products 2003Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data 1993Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities

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