Full Citation

Title: Why Has Urban Inequality Increased?

Citation Type: Journal Article

Publication Year: 2018

ISBN:

ISSN:

DOI: 10.1257/app.20160510

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Abstract: This paper examines mechanisms driving the more rapid increases in wage inequality in larger cities between 1980 and 2007. Production function estimates indicate strong evidence of capital-skill complementarity and increases in the skill bias of agglomeration economies in the context of rapid skill-biased technical change. Immigration shocks are the source of identifying variation across cities in changes to the relative supply of skilled versus unskilled labor. Estimates indicate that changes in the factor biases of agglomeration economies rationalize at least 80 percent of the more rapid increases in wage inequality in larger cities.

Url: https://pubs.aeaweb.org/doi/10.1257/app.20160510

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Authors: Baum-Snow, Nathaniel; Freedman, Matthew; Pavan, Ronni

Periodical (Full): American Economic Journal: Applied Economics

Issue: 4

Volume: 10

Pages: 1-42

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Poverty and Welfare

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