Fabian Eckert, Sharat Ganapati, Conor Walsh, 26 September 2019

In recent years, wages for highly skilled workers have grown rapidly. Using US data between 1980 and 2015, this column studies a group of service industries that are skill-intensive, widely traded, and have recently seen explosive wage growth. It shows that, unlike any other sector, the wage growth in these industries was strongly biased toward the densest local labour markets and the highest-paying firms. These developments alone explain 30% of the increase in inequality between the 50th and 90th percentiles of the wage distribution. 

Kacie Dragan, Ingrid Gould Ellen, Sherry Glied, 19 September 2019

The pace of gentrification in US cities has accelerated, but little evidence exists on its impact on low-income children. This column uses Medicaid claims data to examine how gentrification affects children’s health and wellbeing in New York City. It finds that low-income children born in areas that gentrify are no more likely to move than those born in areas that don't gentrify, and those that do move tend to end up living in areas of lower poverty. Moreover, gentrification does not appear to dramatically alter the health status or health-system utilisation of children by age 9–11, although children growing up in gentrifying areas show somewhat elevated levels of anxiety and depression.

Tomoya Mori, 11 August 2019

The growth of large cities is often attributed to their proximity to exogenous, first-nature advantages. This column uses data on 450 Japanese cities to show that in fact, the regularity of agglomeration holds as a natural consequence of endogenous agglomeration and dispersion forces at the global or local level, rather than exogenous factors.

Theresa Kuchler, Johannes Stroebel, 09 August 2019

The mixing of people and ideas in cities is at the heart of the ‘agglomeration externalities’ that drive the high productivity of cities. While public transit infrastructure is thought to help different people living in different parts of the same city to interact with one another, the lack of large-scale data has made it difficult to study. This column explores the link between public transit and social connectedness in New York City. It finds the first suggestive evidence that New York City’s public transit system plays an important role in enabling social ties to be formed and maintained across geographic distances.

Prottoy A. Akbar, Victor Couture, Gilles Duranton, Adam Storeygard, 29 June 2019

Urban transportation in developing countries is prioritised for massive investments, yet little is known about the determinants of urban mobility in these countries. This column applies a methodology for measuring the performance of overall motor vehicle transportation in a city to the 154 largest cities in India. It finds that there are substantial differences in mobility speeds across large Indian cities but that the variation is driven primarily by uncongested mobility, not by congestion delays. This implies that typical policy measures attempting to improve urban mobility are missing the mark altogether.

David Cuberes, Jennifer Roberts, Cristina Sechel, 02 June 2019

Richer households have typically chosen to live in the suburbs of big cities because of the lower prices and larger properties. This column reports evidence from England that multiple factors now influence household location, including such urban amenities as parks, monuments, restaurants, and public transport. Analysis of the eight largest cities outside London finds no systematic relationship between income and household distance to the city centre. Indeed, household heterogeneity is an important determinant of location: for example, on average households with heads who are migrants live 25% closer to the centre than non-migrants; and only households who are employed are influenced by the availability of public transport.

Rémi Jedwab, Noel Johnson, Mark Koyama, 08 May 2019

The Black Death killed 40% of Europe’s population between 1347 and 1352, but little is known about its spatial effects. The column uses variation in Plague mortality at the city level to explore the short-run and long-run impacts on city growth. After less than 200 years the impact of Black Death mortality in cities was close to zero, but the rate of urban recovery depended on advantages that favoured trade.

Gabriel Ahlfeldt, Elisabetta Pietrostefani, 22 February 2019

Most countries pursue policies that implicitly or explicitly aim at promoting ‘compact urban form’, but so far these policies have not been well-grounded in evidence. This column summarises the state of knowledge on the economic effects of density on various economic outcomes. It concludes that densification policies may lead to aggregate welfare gains, but there may be regressive distributional consequences.

James J Feigenbaum, Christopher Muller, Elizabeth Wrigley-Field, 18 February 2019

The mortality rate of non-Hispanic white Americans in midlife has been rising since the beginning of the 21st century, in contrast to the national decline in deaths from infectious disease witnessed during the previous century. This column reviews the fall in infectious mortality in US cities across regions and racial groups. It finds that southern cities had the highest rate of death from infectious disease in every year from 1900 to 1948, primarily because southern cities were populated by greater proportions of black residents, who suffered extreme risks from infectious disease in cities in all regions. 

Cecile Gaubert, 14 November 2018

In order to encourage economic growth and development, governments often put in place a range of policies aimed at attracting firms to specific areas of a country. Yet relatively little is known about their implications for efficiency.This column argues that such subsidies have costly long-run effects, both on the productive efficiency of the economy and in terms of welfare. Moreover, place-based policies do not necessarily decrease spatial disparities. 

Stephan Brunow, Antonia Birkeneder, Andrés Rodríguez-Pose, 21 July 2018

Research is increasingly pointing to the rising concentration of creative and science-oriented workers as the basic force for making cities, and large cities in particular, the contemporary motors of innovation. This column examines whether this is the case in Germany. The results suggest that creative workers’ innovation is constrained to the boundaries of the firm, while science-based workers generate considerable innovation spillovers. Policies to generate innovation in Germany are likely to yield greater returns by focusing on ‘geeks’ rather than ‘creatives’, and innovation policy should look beyond the largest cities to a broader range of territories that have proven attractive to ‘geeks’.  

Susanne Frick, Andrés Rodríguez-Pose, 14 February 2018

Urban concentration is typically deemed to lead to greater national economic growth. This column challenges this view, using an original dataset covering 68 countries over the past three decades. Urban concentration levels have decreased or remained stable on average, though these averages hide widely diverging trends across countries. Although concentration has been beneficial for high-income countries, this hasn’t been the case for for developing countries.

Andrés Rodríguez-Pose, 06 February 2018

Persistent poverty, economic decay and lack of opportunities cause discontent in declining regions, while policymakers reason that successful agglomeration economies drive economic dynamism, and that regeneration has failed. This column argues that this disconnect has led many of these ‘places that don’t matter’ to revolt in a wave of political populism with strong territorial, rather than social, foundations. Better territorial development policies are needed that tap potential and provide opportunities to those people living in the places that ‘don’t matter’.

Michel Serafinelli, Guido Tabellini, 06 January 2018

Innovation is often concentrated in certain geographic areas, or ‘creative clusters’. This column uses novel data on famous births to explore the dynamics of creativity in European cities between the 11th and 19th centuries. The results show that creativity tends to precede economic prosperity, and that city institutions that protect personal and economic freedoms are conducive to radical innovation in a variety of domains.

Tomoya Mori, 25 August 2017

The population sizes of cities are highly indicative of their industrial structure. This column identifies the cities in Japan in which manufacturing industries have significant agglomeration, and reveals that the number of these agglomeration cities differs widely across industries, with industries that are located in a smaller number of cities being found in larger cities. There is also considerable churning of population and industrial activities among Japanese cities, with population growth reflecting the development of highway and high-speed railway networks.

Keisuke Kondo, 23 July 2017

The large literature on agglomeration economies attests to the higher average productivity of firms in larger cities. However, this literature focuses on positive externalities, and a second potential mechanism – selection against less productive firms – has received little empirical attention. This column explores how these two mechanisms contribute to higher productivity in Japanese cities. Consistent with earlier work considering the case of France, no evidence for a selection effect is found.

Paul Collier, Anthony Venables, 01 May 2017

Cities are key drivers of economic growth. In this video Paul Collier and Anthony Venables discuss how public policy should create effective cities that work. This video was recorded at the International Growth Centre in March 2017.

Raymond Owens, Esteban Rossi-Hansberg, Pierre-Daniel Sarte, 15 February 2017

The decline of manufacturing employment in industrialised countries has hit some cities hard. This column looks at perhaps the best-known case – Detroit – where residents have deserted the neighbourhoods closest to the central business district in favour of the suburbs, despite the longer commute. Redeveloping these areas requires coordination between multiple developers, residents, and the city governments that facilitate permits and public services. The authors propose the introduction of ‘development guarantees’ to ease the coordination problems.

Edward Glaeser, 19 October 2016

There is strong correlation between cities and wealth. In this video, Edward Glaeser explains why cities and urbanisation foster prosperity and development. This video was recorded at the International Growth Centre.

Rudiger Ahrend, Alexander Lembcke, Abel Schumann, 19 January 2016

A city’s metropolitan governance structure has a critical influence on the quality of life and economic outcomes of its inhabitants. This column quantifies the impact of governance on productivity using data from five OECD countries. Administrative fragmentation, which complicates policy coordination across a city, has a negative effect on individual productivity. This finding, combined with benefits from good governance such as improved transport and lower pollution levels, highlights the importance of well-designed metropolitan authorities.

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