Full Citation

Title: Separating Selection From Spillover Effects: Using the Mode to Estimate the Return to City Size

Citation Type: Miscellaneous

Publication Year: 2019

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Abstract: We develop a new method to identify and control for selection when estimating the productivity effects of city size. Selecting out low-performing agents has no effect on modal productivity but reduces the CDF evaluated at the mode. Agglomeration economies have the reverse effect. Estimates based on these principles confirm that selection contributes to productivity among full-time skilled workers but is largely absent for low-skilled workers. Doubling city size causes skilled and low-skilled worker productivity to increase by roughly 2.4 and 4 percent, respectively. Our approach can be applied to other settings provided necessary conditions formalized in the paper are satisfied.

Url: https://www.colorado.edu/economics/sites/default/files/attached-files/rosenthal.pdf

User Submitted?: No

Authors: Jales, Hugo; Jiang, Boqian; Rosenthal, Stuart, S

Publisher: Department of Economics and Center for Policy Research

Data Collections: IPUMS USA

Topics: Land Use/Urban Organization, Other

Countries: United States