Urban Wages: Does City Size Matter?

Echeverri‐Carroll, Elsie L.; Ayala, Sofia G.

doi:10.1177/0042098010369393

Cited by 19 publications

(4 citation statements)

References 67 publications

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“…While there is a sizeable literature engaged with the effects of urban form on innovation, we only found two studies that provided estimates that either directly corresponded to or could be converted into an elasticity of patents with respect to density (Carlino et al 2007;Echeverri-Carroll & Ayala 2011). Some studies report marginal effects that cannot be converted into elasticities due to missing descriptive statistics.…”

Section: Patentsmentioning

confidence: 91%

Demystifying compact urban growth

Ahlfeldt¹,

Pietrostefani²,

Schumann

et al. 2018

OECD Regional Development Working Papers

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Most developed countries now pursue policies that implicitly or explicitly aim at promoting compact urban form. This report analyses more than 300 academic papers that study the effects of compact urban form, and finds that 69% of the papers reviewed find positive effects associated with compact urban form. Over 70% of studies find positive effects of economic density (the number of people living or working in an area). A smaller majority of studies attribute positive effects to mixed land use (58%) and the density of the built environment (56%). These averages hide significant variation across specific dimensions of urban development. In order to understand the effects of compact urban form, the report estimates the monetary per capita value of the change in 15 outcomes in response to a 10% change in economic density. The major benefits of economic density arise from improved productivity and better access to jobs and services. Further benefits are generated through the preservation of urban green space, greater energy efficiency, pollution reduction and safer urban environments. The major costs of higher economic density are related to congestion, health and well-being. Increasing compactness can also contribute to higher land values and housing costs, which are borne disproportionately by renters and first-time buyers. Increasing economic density therefore requires accompanying policy interventions to maximise the benefits and minimise the costs associated with compactness. In particular, policymakers need to facilitate large-scale investment in housing supply and public transport networks to ensure efficient and equitable access to housing, services and jobs in compact cities.

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Section: Patentsmentioning

confidence: 91%

Demystifying compact urban growth

Ahlfeldt¹,

Pietrostefani²,

Schumann

et al. 2018

OECD Regional Development Working Papers

View full text Add to dashboard Cite

show abstract

“…Rauch (1993) estimates that a one-year increase in a US metro's average education level results in a 2.8% gain in total factor productivity. Similarly, Echeverri-Carroll and Ayala (2011) estimate an approximate 2% increase in average individual hourly wages for the doubling of human capital density in metropolitan areas. Simon (2019) finds consistent evidence that both men and women in full power couples are more likely to be employed in high-skilled occupations in large cities and that it is less likely that highly educated wives have to sacrifice their career for those of their husbands’.…”

Section: Concepts and Theorymentioning

confidence: 97%

Power couples, cities, and wages

2022

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Power couples, defined as pairs of highly educated partners, tend to cluster in cities to take advantage of more developed labor markets, better jobs, and higher wages. This research examines to what extent being a partner in a power couple brings additional wage income benefits. We examine what the effects of power couple partnering is on wage income. Furthermore, we examine how the results are affected by gender and place of residence. To determine this, the research uses detailed Swedish micro data on power couples 23–39 years of age over the period 2007–2016. Our analysis finds positive and significant results from being in a power couple on wage income after controlling for individual, workplace, and geographical characteristics. This is the case for both men and women in power couple households without children, but for women only when children are present. For power couples in denser urban areas, we find a positive effect for men in power couples with or without children. We suggest this effect is due to a more equal “balance of power” between partners in highly educated power couples located in bigger cities, where norms and values may favor a relatively greater sharing of household duties between men and women, and where men face a different competitive situation in the labor market.

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“…It consists in retaining particularly long lagged values of the variables measuring agglomeration economies, such as the population density in our case. Many works have used such a strategy to analyze the role of agglomeration economies on productivity or wages (Combes et al, 2008; Echeverri‐Carroll & Ayala, 2011; De La Roca & Puga, 2017, etc.). Some other works have also retained a similar approach to examine the effects of city size on risk of unemployment.…”

Section: Estimation Strategymentioning

confidence: 99%

Agglomeration effects and unemployment to work: Evidence from French data

Duguet

L’Horty

Sari

2023

Papers in Regional Science

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In this work, we explore the role of agglomeration economies on unemployment-to-work transition rates in French employment areas. Mobilizing administrative exhaustive data files from individuals registered at the employment agency, we estimate local transition rates that are independent of differences in local characteristics of job seekers.Then, observed disparities between areas are explained by population density, our measure for agglomeration effects, and some demographic and labor market characteristics. We retain econometrics models considering spatial dependency for our dependent variable but also endogeneity of our main variable of interest. We find a negative relationship between population density and unemployment to work.

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Urban Wages: Does City Size Matter?

Cited by 19 publications

References 67 publications

Demystifying compact urban growth

Demystifying compact urban growth

Power couples, cities, and wages

Agglomeration effects and unemployment to work: Evidence from French data

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