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Title: The Comparitive Advantage of Cities
Citation Type: Miscellaneous
Publication Year: 2013
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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.
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Authors: Davis, Donald R.; Dingel, Jonathan I.
Publisher: Princeton University
Data Collections: IPUMS USA
Topics: Labor Force and Occupational Structure, Methodology and Data Collection, Other, Poverty and Welfare
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