Are Cities the New Growth Escalator?

Urban areas tend to have much more productive labor and higher salaries than rural areas, and there are vast differences across urban areas. Areas with high salaries and high productivity tend to have employers that invest in much more research and...

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Main Author:	Moretti, Enrico
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACADEMIC RESEARCH AVERAGE WAGE CAREER CAREERS CARPENTERS CITIES COLLEGE EDUCATION COLLEGE GRADUATE COLLEGE GRADUATES COLLEGE-EDUCATED WORKERS COLLEGES COMMUNITIES COMPARATIVE ADVANTAGE CROSS-SECTIONAL DATA DEMOGRAPHICS DEPRESSION DIVISION OF LABOR ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICIES EDUCATION SYSTEMS EMPLOYMENT EXTERNALITIES EXTERNALITY FLOW OF KNOWLEDGE GDP GOVERNMENT INTERVENTION GROWTH THEORY HIGH SCHOOL GRADUATES HIGH WAGES HIGHER PRODUCTIVITY HOUSING HUMAN CAPITAL INCOME INFORMATION TECHNOLOGY INNOVATION INNOVATIONS INSTITUTIONS OF HIGHER EDUCATION INSURANCE INTELLECTUAL PROPERTY JOB CREATION JOBS LABOR COSTS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LABORERS LAND USE LAND USE REGULATIONS LAYOFF LEARNING LEARNING OPPORTUNITIES LEVELS OF EDUCATION LITERACY LITERATURE LIVING STANDARDS LOCAL EMPLOYERS LOCAL GOVERNMENTS LOCAL INFRASTRUCTURE LOCAL LABOR MARKET LOCAL LABOR MARKETS MANPOWER MARKET FAILURES MEDICAL SCHOOL METROPOLITAN AREAS MUNICIPALITIES OCCUPATION OCCUPATIONS OPEN ACCESS PAPERS PAYING JOBS POLITICAL ECONOMY PRIVATE COMPANIES PRIVATE SECTOR PRODUCTION FACILITY PRODUCTIVITY GAINS RECESSION RENTS REPUBLIC RESEARCH CENTERS RESEARCH UNIVERSITY RESEARCHERS ROADS SAVINGS SCHOOLS SCIENCE RESEARCH SCIENTISTS SENIORITY SERVICE PROVIDERS SERVICE SECTOR SKILLED INDIVIDUALS SKILLED WORKER SKILLED WORKERS SOCIAL BENEFITS SOCIAL SCIENTISTS STEEL FACTORY TAX TOTAL LABOR FORCE UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT COMPENSATION UNIVERSITIES UNSKILLED WORKER UNSKILLED WORKERS URBAN AREAS URBAN CENTERS URBAN DEVELOPMENT WASTE WORKER WORKERS
Online Access:	http://documents.worldbank.org/curated/en/2014/05/19540035/cities-new-growth-escalator http://hdl.handle.net/10986/18744

id	okr-10986-18744
recordtype	oai_dc
spelling	okr-10986-187442021-04-23T14:03:49Z Are Cities the New Growth Escalator? Moretti, Enrico ACADEMIC RESEARCH AVERAGE WAGE CAREER CAREERS CARPENTERS CITIES COLLEGE EDUCATION COLLEGE GRADUATE COLLEGE GRADUATES COLLEGE-EDUCATED WORKERS COLLEGES COMMUNITIES COMPARATIVE ADVANTAGE CROSS-SECTIONAL DATA DEMOGRAPHICS DEPRESSION DIVISION OF LABOR ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICIES EDUCATION SYSTEMS EMPLOYMENT EXTERNALITIES EXTERNALITY FLOW OF KNOWLEDGE GDP GOVERNMENT INTERVENTION GROWTH THEORY HIGH SCHOOL GRADUATES HIGH WAGES HIGHER PRODUCTIVITY HOUSING HUMAN CAPITAL INCOME INFORMATION TECHNOLOGY INNOVATION INNOVATIONS INSTITUTIONS OF HIGHER EDUCATION INSURANCE INTELLECTUAL PROPERTY JOB CREATION JOBS LABOR COSTS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LABORERS LAND USE LAND USE REGULATIONS LAYOFF LEARNING LEARNING OPPORTUNITIES LEVELS OF EDUCATION LITERACY LITERATURE LIVING STANDARDS LOCAL EMPLOYERS LOCAL GOVERNMENTS LOCAL INFRASTRUCTURE LOCAL LABOR MARKET LOCAL LABOR MARKETS MANPOWER MARKET FAILURES MEDICAL SCHOOL METROPOLITAN AREAS MUNICIPALITIES OCCUPATION OCCUPATIONS OPEN ACCESS PAPERS PAYING JOBS POLITICAL ECONOMY PRIVATE COMPANIES PRIVATE SECTOR PRODUCTION FACILITY PRODUCTIVITY GAINS RECESSION RENTS REPUBLIC RESEARCH CENTERS RESEARCH UNIVERSITY RESEARCHERS ROADS SAVINGS SCHOOLS SCIENCE RESEARCH SCIENTISTS SENIORITY SERVICE PROVIDERS SERVICE SECTOR SKILLED INDIVIDUALS SKILLED WORKER SKILLED WORKERS SOCIAL BENEFITS SOCIAL SCIENTISTS STEEL FACTORY TAX TOTAL LABOR FORCE UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT COMPENSATION UNIVERSITIES UNSKILLED WORKER UNSKILLED WORKERS URBAN AREAS URBAN CENTERS URBAN DEVELOPMENT WASTE WORKER WORKERS Urban areas tend to have much more productive labor and higher salaries than rural areas, and there are vast differences across urban areas. Areas with high salaries and high productivity tend to have employers that invest in much more research and development than areas with low salaries and low productivity. This paper addresses two questions. First, it discusses the causes of these vast geographical differences in wages, human capital, and innovation. The second part of the paper discusses regional economic development policies. The European Union has an even more ambitious program transferring its development funds to regions with below average incomes. Asian countries, especially China, have a variety of special economic zones, designed to attract foreign investment to specific areas. Such regional development policies, often called place-based economic policies, are effectively a form of welfare, targeting cities or regions, not individuals. While such policies are widespread, the economic logic behind them is rarely discussed and even less frequently understood. This paper clarifies when these policies are wasteful, when they are efficient, and who the expected winners and losers are. Understanding when government intervention makes sense and when it does not is a crucial first step in setting sound economic development policies. Local governments can certainly lay a foundation for economic development and create all the conditions necessary for a city's rebirth, including a business climate friendly to job creation. 2014-06-25T19:12:27Z 2014-06-25T19:12:27Z 2014-05 http://documents.worldbank.org/curated/en/2014/05/19540035/cities-new-growth-escalator http://hdl.handle.net/10986/18744 English en_US Policy Research Working Paper;No. 6881 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACADEMIC RESEARCH AVERAGE WAGE CAREER CAREERS CARPENTERS CITIES COLLEGE EDUCATION COLLEGE GRADUATE COLLEGE GRADUATES COLLEGE-EDUCATED WORKERS COLLEGES COMMUNITIES COMPARATIVE ADVANTAGE CROSS-SECTIONAL DATA DEMOGRAPHICS DEPRESSION DIVISION OF LABOR ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICIES EDUCATION SYSTEMS EMPLOYMENT EXTERNALITIES EXTERNALITY FLOW OF KNOWLEDGE GDP GOVERNMENT INTERVENTION GROWTH THEORY HIGH SCHOOL GRADUATES HIGH WAGES HIGHER PRODUCTIVITY HOUSING HUMAN CAPITAL INCOME INFORMATION TECHNOLOGY INNOVATION INNOVATIONS INSTITUTIONS OF HIGHER EDUCATION INSURANCE INTELLECTUAL PROPERTY JOB CREATION JOBS LABOR COSTS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LABORERS LAND USE LAND USE REGULATIONS LAYOFF LEARNING LEARNING OPPORTUNITIES LEVELS OF EDUCATION LITERACY LITERATURE LIVING STANDARDS LOCAL EMPLOYERS LOCAL GOVERNMENTS LOCAL INFRASTRUCTURE LOCAL LABOR MARKET LOCAL LABOR MARKETS MANPOWER MARKET FAILURES MEDICAL SCHOOL METROPOLITAN AREAS MUNICIPALITIES OCCUPATION OCCUPATIONS OPEN ACCESS PAPERS PAYING JOBS POLITICAL ECONOMY PRIVATE COMPANIES PRIVATE SECTOR PRODUCTION FACILITY PRODUCTIVITY GAINS RECESSION RENTS REPUBLIC RESEARCH CENTERS RESEARCH UNIVERSITY RESEARCHERS ROADS SAVINGS SCHOOLS SCIENCE RESEARCH SCIENTISTS SENIORITY SERVICE PROVIDERS SERVICE SECTOR SKILLED INDIVIDUALS SKILLED WORKER SKILLED WORKERS SOCIAL BENEFITS SOCIAL SCIENTISTS STEEL FACTORY TAX TOTAL LABOR FORCE UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT COMPENSATION UNIVERSITIES UNSKILLED WORKER UNSKILLED WORKERS URBAN AREAS URBAN CENTERS URBAN DEVELOPMENT WASTE WORKER WORKERS
spellingShingle	ACADEMIC RESEARCH AVERAGE WAGE CAREER CAREERS CARPENTERS CITIES COLLEGE EDUCATION COLLEGE GRADUATE COLLEGE GRADUATES COLLEGE-EDUCATED WORKERS COLLEGES COMMUNITIES COMPARATIVE ADVANTAGE CROSS-SECTIONAL DATA DEMOGRAPHICS DEPRESSION DIVISION OF LABOR ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICIES EDUCATION SYSTEMS EMPLOYMENT EXTERNALITIES EXTERNALITY FLOW OF KNOWLEDGE GDP GOVERNMENT INTERVENTION GROWTH THEORY HIGH SCHOOL GRADUATES HIGH WAGES HIGHER PRODUCTIVITY HOUSING HUMAN CAPITAL INCOME INFORMATION TECHNOLOGY INNOVATION INNOVATIONS INSTITUTIONS OF HIGHER EDUCATION INSURANCE INTELLECTUAL PROPERTY JOB CREATION JOBS LABOR COSTS LABOR DEMAND LABOR ECONOMICS LABOR FORCE LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LABORERS LAND USE LAND USE REGULATIONS LAYOFF LEARNING LEARNING OPPORTUNITIES LEVELS OF EDUCATION LITERACY LITERATURE LIVING STANDARDS LOCAL EMPLOYERS LOCAL GOVERNMENTS LOCAL INFRASTRUCTURE LOCAL LABOR MARKET LOCAL LABOR MARKETS MANPOWER MARKET FAILURES MEDICAL SCHOOL METROPOLITAN AREAS MUNICIPALITIES OCCUPATION OCCUPATIONS OPEN ACCESS PAPERS PAYING JOBS POLITICAL ECONOMY PRIVATE COMPANIES PRIVATE SECTOR PRODUCTION FACILITY PRODUCTIVITY GAINS RECESSION RENTS REPUBLIC RESEARCH CENTERS RESEARCH UNIVERSITY RESEARCHERS ROADS SAVINGS SCHOOLS SCIENCE RESEARCH SCIENTISTS SENIORITY SERVICE PROVIDERS SERVICE SECTOR SKILLED INDIVIDUALS SKILLED WORKER SKILLED WORKERS SOCIAL BENEFITS SOCIAL SCIENTISTS STEEL FACTORY TAX TOTAL LABOR FORCE UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT COMPENSATION UNIVERSITIES UNSKILLED WORKER UNSKILLED WORKERS URBAN AREAS URBAN CENTERS URBAN DEVELOPMENT WASTE WORKER WORKERS Moretti, Enrico Are Cities the New Growth Escalator?
relation	Policy Research Working Paper;No. 6881
description	Urban areas tend to have much more productive labor and higher salaries than rural areas, and there are vast differences across urban areas. Areas with high salaries and high productivity tend to have employers that invest in much more research and development than areas with low salaries and low productivity. This paper addresses two questions. First, it discusses the causes of these vast geographical differences in wages, human capital, and innovation. The second part of the paper discusses regional economic development policies. The European Union has an even more ambitious program transferring its development funds to regions with below average incomes. Asian countries, especially China, have a variety of special economic zones, designed to attract foreign investment to specific areas. Such regional development policies, often called place-based economic policies, are effectively a form of welfare, targeting cities or regions, not individuals. While such policies are widespread, the economic logic behind them is rarely discussed and even less frequently understood. This paper clarifies when these policies are wasteful, when they are efficient, and who the expected winners and losers are. Understanding when government intervention makes sense and when it does not is a crucial first step in setting sound economic development policies. Local governments can certainly lay a foundation for economic development and create all the conditions necessary for a city's rebirth, including a business climate friendly to job creation.
format	Publications & Research :: Policy Research Working Paper
author	Moretti, Enrico
author_facet	Moretti, Enrico
author_sort	Moretti, Enrico
title	Are Cities the New Growth Escalator?
title_short	Are Cities the New Growth Escalator?
title_full	Are Cities the New Growth Escalator?
title_fullStr	Are Cities the New Growth Escalator?
title_full_unstemmed	Are Cities the New Growth Escalator?
title_sort	are cities the new growth escalator?
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2014/05/19540035/cities-new-growth-escalator http://hdl.handle.net/10986/18744
_version_	1764442586807795712

Are Cities the New Growth Escalator?

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