Human Capital and Externalities in Cities

Ciccone, Antonio; Peri, Giovanni

doi:10.2139/ssrn.242708

Cited by 14 publications

(12 citation statements)

References 63 publications

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“…There is an existing literature that investigates the linkages between the fraction of skilled workers and the labour market outcomes of the less‐skilled (see Acemoglu and Angrist, 2000; Moretti, 2002, 2003, 2004; Ciccone and Peri, 2002) that is motivated primarily by interest in the hypothesis of estimating the extent of human capital externalities that is one potential source of agglomeration economies 6 . These studies focus on the effect of the proportion of skilled workers in a city on the producer wage of unskilled workers as this is what is appropriate for their question of interest.…”

Section: Empirical Evidencementioning

confidence: 94%

We Can Work It Out: The Impact of Technological Change on the Demand for Low‐Skill Workers

Manning

2004

Scottish J Political Eco

154

111

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There is little doubt that technology has had the most profound effect on altering the tasks that we humans do in our jobs. Economists have long speculated on how technical change affects both the absolute demand for labour as a whole and the relative demands for different types of labour. In recent years, the idea of skill-biased technical change has become the consensus view about the current impact of technology on labour demand, namely that technical change leads to an increase in the demand for skilled relative to unskilled labour painting a bleak future for the employment prospects of less-skilled workers. But, drawing on a recent paper by Autor, Levy and Murnane (2003) about the impact of technology on the demand for different types of skills, this paper argues that the demand in the least-skilled jobs may be growing. But, it is argued that employment of the less-skilled is increasingly dependent on physical proximity to the moreskilled and may also be vulnerable in the long-run to further technological developments.

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Section: Empirical Evidencementioning

confidence: 94%

We Can Work It Out: The Impact of Technological Change on the Demand for Low‐Skill Workers

Manning

2004

Scottish J Political Eco

154

111

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“…This choice is essentially motivated by three reasons. First, LLMs are "self-contained" labor markets, since by definition they are characterized 9 However, there might ultimately be decreasing returns to the agglomeration of high skills (Benabou, 1993; see also Ciccone and Peri, 2000). Note also that in the short term, an imperfect substitution of workers with different levels of human capital could reduce returns to education in the most agglomerated areas by creating an excess supply of highly educated workers in large cities (see Moretti, 2004), forcing some of the most skilled workers to fill vacancies requiring lower levels of qualification (which would worsen the quality of the average match).…”

Section: Data and Descriptive Evidencementioning

confidence: 99%

Wages and the City. Evidence from Italy

2008

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We analyze empirically the impact of urban agglomeration on Italian wages. Using micro-data from the Bank of Italy's Survey of Household Income and Wealth for the years 1995, 1998, 2000 and 2002 on more than 22,000 employees distributed in 242 randomly drawn local labor markets, we test whether the structure of wages varies with urban scale. We find that every additional 100,000 inhabitants in the local labor market raises earnings by 0.1 percent. The use of a geographical approach enables us to state that this effect decays very rapidly with distance, losing significance beyond approximately 12 kilometers. We also find that urbanization does not affect returns to experience and that it reduces returns to education and to tenure with current firm, while providing a premium to worker supervisors. © 2007 Elsevier B.V. All rights reserved

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“…Roback (1982) and Kahn (1995) emphasize the relationship between local amenities and wages and land rents within cities. Rauch (1993) and Moretti (1998) provide empirical evidence of city-level human capital externalities, although Ciccone and Peri (2000) argue that these disappear when one controls for the potential complementarity between workers with different levels of human capital. Glaeser and Mare (1994) stress the role of human capital accumulation in explaining the urban wage premium.…”

Section: Endnotesmentioning

confidence: 99%

The Economic Geography of Trade, Production, and Income: A Survey of Empirics

Overman¹,

Redding²,

Venables³

Handbook of International Trade

114

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This paper surveys the empirical literature on the economic geography of trade flows, factor prices, and the location of production. The discussion is structured around the empirical predictions of a canonical theoretical model.We review empirical evidence on the determinants of trade costs and the effects of these costs on trade flows. Geography is a major determinant of factor prices, and access to foreign markets alone is shown to explain some 35% of the cross-country variation in p er capita income. The paper documents empirical findings of home market (or magnification) effects, suggesting that imperfectly competitive industries are drawn more than proportionately to locations with good market access. Sub-national evidence establishes the presence of industrial clustering, and we examine the roles played by product market linkages to customer and supplier firms, knowledge spillovers, and labour market externalities.

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Human Capital and Externalities in Cities

Cited by 14 publications

References 63 publications

We Can Work It Out: The Impact of Technological Change on the Demand for Low‐Skill Workers

We Can Work It Out: The Impact of Technological Change on the Demand for Low‐Skill Workers

Wages and the City. Evidence from Italy

The Economic Geography of Trade, Production, and Income: A Survey of Empirics

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