Why Has Urban Inequality Increased?

By Nathaniel Baum-Snow, Matthew Freedman, Ronni Pavan. American Economic Journal: Applied Economics, 2018

147 citations recorded by the source corpus.

This paper examines mechanisms driving the more rapid increases in wage inequality in larger cities between 1980 and 2007. Production function estimates indicate strong evidence of capital–skill complementarity and increases in the skill bias of agglomeration economies in the context of rapid skill-biased technical change. Immigration shocks are the source of identifying variation across cities in changes to the relative supply of skilled versus unskilled labor. Estimates indicate that changes in the factor biases of agglomeration economies rationalize at least 80 percent of the more rapid increases in wage inequality in larger cities. (JEL J24, J31, O33, R23)

Subfields: Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/8bb3bcc215e84731c05d12a6f652e1e5f20e88f9

Citations in the corpus

• Work of the Past, Work of the Future (2019, unknown): “26 Use the same IPUMS source data used here (though for a shorter time interval), Baum-Snow, Freedman, and Pavan (2018) find that not only did the urban wage gradient rise for workers with college or higher education over the last several decades (as is well known), it fell a structural model that a”