Year: 2014
Type: report
Abstract: What determines the distributions of skills, occupations, and industries across cities?We develop a theory to jointly address these fundamental questions about the spatial organization of economies.Our model incorporates a system of cities, their internal urban structures, and a high-dimensional theory of factor-driven comparative advantage.It predicts that larger cities will be skill-abundant and specialize in skill-intensive activities according to the monotone likelihood ratio property.We test the model using data on 270 US metropolitan areas, 3 to 9 educational categories, 22 occupations, and 21 manufacturing industries.The results provide support for our theory's predictions.
DOI: 10.3386/w20602
Authors: Donald Davis, Jonathan Dingel
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3021300146