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.

Jitendra Bajpai, 12 February 2018

David Miles, 07 February 2018

Over recent decades houses have become increasingly expensive in the UK, leading to what is routinely described as a ‘housing crisis’. This column assesses whether, over the long term, the UK experience is so unusual and explores the underlying forces at work. Two key elasticities and one technological factor are highlighted as being central to the story and will determine what happens over the next 50 years.

Tiloka de Silva, Silvana Tenreyro, 06 February 2018

Susanne Frick, Andrés Rodríguez-Pose, 20 October 2017

Big cities have historically been seen as an important prerequisite for a country’s economic growth. In recent decades, however, developing countries have rapidly urbanised, and large cities are increasingly found in relatively poor countries. This column uses a new dataset to revisit the relationship between city size and economic growth. It finds that relatively small cities (with populations under three million) have been more conducive to economic growth, while very large cities are only growth-enhancing in countries with a very large urban population.

Edward Glaeser, 20 June 2017

Gilles Duranton, Ejaz Ghani, Arti Grover Goswami, William Kerr, 26 May 2016

Dietrich Vollrath, Rémi Jedwab, Douglas Gollin, 09 March 2016

Adriana Kocornik-Mina, Thomas McDermott, Guy Michaels, Ferdinand Rauch, 05 May 2016

Sandra Sequeira, Nathan Nunn, Nancy Qian, 17 May 2017

Recent empirical studies of the effects of immigration have tended to focus on short-run outcomes. This column considers the longer run by examining how mass migration at the turn of the 20th century has affected US outcomes today. Higher historical immigration between 1860 and 1920 is found to result in significantly better social and economic outcomes today. The results suggest that the long-run benefits of immigration can be large, can persist across time, and need not come at a high social cost.

Ravi Kanbur, Yue Wang, Xiaobo Zhang, 15 March 2017

Sharply increasing inequality became an integral part of the narrative on Chinese development since the beginning of the reform process in 1978. Over the past decade, however, many studies have argued that inequality has been plateauing, or even declining. This column uses several datasets, including household surveys and regional-level government statistics, to show evidence of a mitigation of inequality in the early 21st century, and indeed, declining rates over recent years. Possible drivers of this turnaround are urbanisation, transfer and regulation regimes, and tightening rural labour markets.  

Rémi Jedwab, Edward Kerby, Alexander Moradi, 02 March 2017

At the turn of the 19th century, sub-Saharan Africa was the least urbanised region in the world, with only about 50 cities of more than 10,000 inhabitants. By 2010, the number of cities had increased to almost 3,000. This column, taken from a recent VoxEU eBook, explores how colonial railroad investments transformed Africa’s economic geography, and asks whether economic outcomes would have been different and development delayed without the railroads.

Girum Abebe, Stefano Caria, Marcel Fafchamps, Paolo Falco, Simon Franklin, Simon Quinn, 09 December 2016

Youth unemployment is a growing problem around the world, particularly in urban areas. This column assesses the impact of labour market interventions in Addis Ababa targeting two issues commonly faced by unemployed youth: job search costs and a poor ability to signal their skills. A transport subsidy and a job application workshop were both found to have significant positive effects on youth labour market outcomes, pointing to the important role policymakers can play in helping young people find satisfying employment.

Hisamitsu Saito, Toshiyuki Matsuura, 25 November 2016

Agglomeration’s impact on product quality has received much less attention than its impact on productivity, despite the importance of quality as a precondition for economic development. This column employs plant-product-level data from Japanese manufacturing to assess the effects of urban agglomeration on product quality. The findings suggest that state and municipal tax breaks, and other public efforts to attract enterprises, enhance economic competitiveness by improving product quality along with productivity.

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.

Gilles Duranton, Ejaz Ghani, Arti Grover Goswami, William Kerr, 27 May 2016

Optimising the allocation of factors of production improves productivity. In India, where evidence suggests land is severely misallocated to inefficient manufacturing firms, access to financing is disproportionately tied to access to land. This column examines the link between the misallocation of land and access to capital through financial markets. A very strong positive correlation emerges between the two, consistent with the fact that land and buildings can provide strong collateral support for accessing finance from the credit market.

Gaurav Datt, Martin Ravallion, Rinku Murgai, 26 March 2016

There has been much debate about the poverty impacts of economic growth and structural transformation in developing countries. This column revisits these issues using a newly constructed dataset of poverty measures for India spanning 60 years. There has been a downward trend in poverty measures since 1970, with an acceleration post-1991, despite rising inequality. Post-1991 data suggest stronger inter-sectoral linkages. Urban consumption growth came with gains to both the rural and urban poor. The primary/secondary/tertiary composition of growth has ceased to matter, as all three sectors contributed to poverty reduction.

Kristian Behrens, Frédéric Robert-Nicoud, 24 July 2014

Large cities are more unequal than the nations that host them. This column argues that this is because large cities disproportionately reward talented superstars and disproportionately ‘fail’ the least talented. Cities should thus be the primary focus of policies to reduce inequality and its adverse consequences for society.

Ejaz Ghani, William Kerr, Ishani Tewari, 11 July 2014

Some cities grow through specialisation others through diversity. This column measures specialisation and diversity for the manufacturing and services sectors in India. It finds that Indian districts with a broader set of industries exhibit greater employment growth. This is particularly true for low population densities, rural areas and unorganised sector, reflecting knowledge flow and the inclusive nature of employment growth due to diversity.

Coen Teulings, 11 July 2014

The financial crisis and the Great Recession have led to calls for more economic history in economic education. This column argues for a much broader use of history in economics courses, as a device for teaching both the logic and the empirical relevance of economics. A proposed curriculum would include the rise of agriculture, urbanisation, war, the rule of law, and demography.