TY  - JOUR
AU  - Shapiro,Jesse M.
TI  - Smart Cities: Quality of Life, Productivity, and the Growth Effects of Human Capital
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11615
PY  - 2005
Y2  - September 2005
UR  - http://www.nber.org/papers/w11615
L1  - http://www.nber.org/papers/w11615.pdf
N1  - Author contact info:
Jesse M. Shapiro
University of Chicago
Booth School of Business
5807 S. Woodlawn Avenue
Chicago, IL 60637
Tel: 773/834-2688
Fax: 773-753-0563
E-Mail: jmshapir@uchicago.edu
M2  - featured in NBER digest on 2005-09-19
AB  - From 1940 to 1990, a 10 percent increase in a metropolitan area's concentration of college-educated residents was associated with a .8 percent increase in subsequent employment growth. Instrumental variables estimates support a causal relationship between college graduates and employment growth, but show no evidence of an effect of high school graduates. Using data on growth in wages, rents and house values, I calibrate a neoclassical city growth model and find that roughly 60 percent of the employment growth effect of college graduates is due to enhanced productivity growth, the rest being caused by growth in the quality of life. This finding contrasts with the common argument that human capital generates employment growth in urban areas solely through changes in productivity.
ER  -