Full Citation

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://www.nber.org/papers/w20602.pdf

User Submitted?: No

Authors: Davis, Donald, R; Dingel, Jonathan, I

Series Title: NBER WORKING PAPER SERIES

Publication Number: 20602

Institution: NBER

Pages: 56

Publisher Location:

Data Collections: IPUMS USA

Topics: Other, Population Data Science

Countries: United States