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Smart cities : quality of life, productivity, and the growth effects of human capital

Author: Jesse Shapiro; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, ©2005.
Series: Working paper series (National Bureau of Economic Research), working paper no. 11615.
Edition/Format:   Print book : EnglishView all editions and formats
Summary:
"From 1940 to 1990, a 10 percent increase in a metropolitan area's concentration of college-educated residents was associated with a .8 percent increase in subsequent employment growth. Instrumental variables estimates support a causal relationship between college graduates and employment growth, but show no evidence of an effect of high school graduates. Using data on growth in wages, rents and house values, I  Read more...
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Details

Material Type: Internet resource
Document Type: Book, Internet Resource
All Authors / Contributors: Jesse Shapiro; National Bureau of Economic Research.
OCLC Number: 61912329
Notes: "September 2005."
Description: 35, 8 pages ; 22 cm.
Series Title: Working paper series (National Bureau of Economic Research), working paper no. 11615.
Responsibility: Jesse M. Shapiro.

Abstract:

"From 1940 to 1990, a 10 percent increase in a metropolitan area's concentration of college-educated residents was associated with a .8 percent increase in subsequent employment growth. Instrumental variables estimates support a causal relationship between college graduates and employment growth, but show no evidence of an effect of high school graduates. Using data on growth in wages, rents and house values, I calibrate a neoclassical city growth model and find that roughly 60 percent of the employment growth effect of college graduates is due to enhanced productivity growth, the rest being caused by growth in the quality of life. This finding contrasts with the common argument that human capital generates employment growth in urban areas solely through changes in productivity"--National Bureau of Economic Research web site.

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