Educational Attainment in U.S. Cities

Lutz Hendricks
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Lutz Hendricks: Iowa State University

No 127, 2007 Meeting Papers from Society for Economic Dynamics

Abstract: This paper proposes a theory of educational attainment differences across U.S. metropolitan areas. The theory is motivated by the finding that employment in business services predicts more than 70% of the observed cross-city variation in education. In the model, agglomeration economies in the production of business services, which are complementary with skilled labor, account for cross-city variation in education. The theory makes a number of testable predictions which find strong support in U.S. data.

Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed007:127

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