Full Citation

Title: A Spatial Knowledge Economy

Citation Type: Working Paper

Publication Year: 2012

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Abstract: Leading empiricists and theorists of cities have recently argued that the generation and exchange of ideas must play a more central role in the analysis of cities. This paper develops the first system of cities model with costly idea exchange as the agglomeration force. Our model replicates a broad set of established facts about the cross section of cities. It provides the first spatial equilibrium theory of why skill premia are higher in larger cities, how variation in these premia emerges from symmetric fundamentals, and why skilled workers have higher migration rates than unskilled workers when both are fully mobile.

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

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Publication Number: 18188

Institution: National Bureau of Economic Research, Inc.

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Data Collections: IPUMS USA

Topics: Education, Labor Force and Occupational Structure, Migration and Immigration

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