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Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities

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Rauch, James E.·1993·Journal of Urban Economics

Abstract

Based on recent theoretical developments I argue that the average level of human capital is a local public good. Cities with higher average levels of human capital should therefore have higher wages and higher land rents. After conditioning on the characteristics of individual workers and dwellings, this prediction is supported by data for Standard Metropolitan Statistical Areas (SMSAs) in the United States, where the SMSA average levels of formal education and work experience are used as proxies for the average level of human capital. I evaluate the alternative explanations of omitted SMSA variables and self-selection. I conclude by computing an estimate of the effect of an additional year of average education on total factor productivity.

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Metadata

Authors
Rauch, J. E.
Venue
Journal of Urban Economics
Publisher
Elsevier BV
Published
1993-11
Volume
34
Issue
3
Pages
380-400
ISSN
0094-1190 (ISSN-L)
OpenAlex
W2892005447
Cited by
1,290
References
0
FWCI
18.85
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities. https://app.cochat.ai/papers/10.1006/juec.1993.1042
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Rauch, J. E. (1993). Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities. Journal of Urban Economics. https://doi.org/10.1006/juec.1993.1042

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