Spatial Polarization

TitleSpatial Polarization
Publication TypeWorking Paper
Year of Publication2019
AuthorsCerina, F, Dienesch, E, Moro, A, Rendall, M
Number2019-09
ISBN Number978 88 68512 347
KeywordsCity Sizes, Employment Polarization, Spatial Sorting
Abstract

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.

Citation Key7221
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