We document the emergence of spatial polarization in the U.S. during the 1980-2008 period. This phenomenon is characterized by two facts: i) employment polarization is stronger in larger relative to smaller cities and it is mainly driven by heads rather than hours; and ii) while the skill distribution of cities is remarkably similar across city-size until 1980, after that date larger cities experience a faster increase in the share of both high- and low-skilled workers and a faster decline in the share of middle- skilled ones, i.e. the skill distribution of larger cities becomes “fatter” with respect to smaller cities. We quantitatively evaluate the role of technology in generating these patterns by using a spatial general equilibrium model, and find that faster skill-biased technological change in larger cities can account for a substantial fraction of spatial polarization in the U.S. Counterfactual excercises suggest that the differential increase in the share of low-skilled workers across city size is due, in similar proportions, to both the large demand by high-skilled workers for low-skilled services, and the higher complementarity between low- and high-skilled workers in production, relative to middle-skilled.

Spatial polarization

Cerina, Fabio;Dienesch, Elisa;Moro, Alessio;
2019-01-01

Abstract

We document the emergence of spatial polarization in the U.S. during the 1980-2008 period. This phenomenon is characterized by two facts: i) employment polarization is stronger in larger relative to smaller cities and it is mainly driven by heads rather than hours; and ii) while the skill distribution of cities is remarkably similar across city-size until 1980, after that date larger cities experience a faster increase in the share of both high- and low-skilled workers and a faster decline in the share of middle- skilled ones, i.e. the skill distribution of larger cities becomes “fatter” with respect to smaller cities. We quantitatively evaluate the role of technology in generating these patterns by using a spatial general equilibrium model, and find that faster skill-biased technological change in larger cities can account for a substantial fraction of spatial polarization in the U.S. Counterfactual excercises suggest that the differential increase in the share of low-skilled workers across city size is due, in similar proportions, to both the large demand by high-skilled workers for low-skilled services, and the higher complementarity between low- and high-skilled workers in production, relative to middle-skilled.
2019
9788868512347
City sizes; employment polarization; spatial sorting
File in questo prodotto:
File Dimensione Formato  
wp-19-09.pdf

accesso aperto

Descrizione: Working Paper
Tipologia: versione editoriale
Dimensione 1.6 MB
Formato Adobe PDF
1.6 MB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11584/287034
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact