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Title: The Comparative Advantage of Cities

Citation Type: Working Paper

Publication Year: 2014

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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.

Url: https://marroninstitute.nyu.edu/uploads/content/Davis__Dingel_-_Comparative_Advantage_of_Cities.pdf

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Authors: Davis, Donald R; Dingel, Jonathan I

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Publication Number: 17

Institution: Marron Institute of Urban Management

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Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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