Returns to Communication in Specialised and Diversified US Cities
A key factor in today’s urban wealth is the means by which cities reduce costs of communication. Rapid progress in transport, information and communication technologies lowered the costs of production at distance. Still, in 2009 metropolitan areas were responsible for 85 % of US employment, income and production. The significance of personal communication for innovation is a fundamental aspect of the current economic success of cities. The economic structure of cities varies; diversified cities focusing on producing ideas and specialised cities focusing on producing products successfully coexist in the US. Is communication equally important and valued within both city types?
KeywordsWork Activity Specialisation Level Knowledge Spillover Current Population Survey City Size
I thank Steven Brakman, Harry Garretsen, Andrea Jaeger, Jasper de Jong, Bas ter Weel, two anonymous referees and seminar participants at the SOM conference and the Tinbergen Workshop for many insightful comments.
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