|Publication Type||Working Paper|
|Year of Publication||2019|
|Authors||Cerina, F, Dienesch, E, Moro, A, Rendall, M|
|ISBN Number||978 88 68512 347|
|Keywords||City Sizes, Employment Polarization, Spatial Sorting|
We study the allocation of skills across space and time in the U.S. Employment polarization is stronger in larger cities and mainly driven by number of workers. Using a theory-based measure of skills obtained within a spatial general equilibrium model, we investigate how the skill distribution changes across space and time. Consistent with employment polarization by city size, during the 1980- 2008 larger cities display a higher increase in the fraction of high- and low-skilled workers, while smaller cities display a higher increase in the fraction of medium-skilled. These patterns are largely determined by the emergence of skill-biased technological change.