The Divergence of Human Capital Levels Across Cities

Christopher R. Berry and Edward Ludwig Glaeser ()

No 11617, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: J0 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-geo, nep-ltv and nep-ure
Date: 2005-09
Note: EFG
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