Communication externalities in cities |
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Authors: | Sylvie Charlot Gilles Duranton |
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Affiliation: | aCESAER–INRA Dijon, 26 Boulevard Docteur Petitjean, BP 87999, 21079 Dijon, France;bDepartment of Geography and Environment, London School of Economics and CEPR, Houghton Street, London WC2A 2AE, UK |
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Abstract: | To identify communication externalities in French cities, we exploit a unique survey recording workplace communication of individual workers. Our hypothesis is that in larger and/or more educated cities, workers should communicate more. In turn, more communication should have a positive effect on wages. By estimating both an earnings and a communication equation, we find evidence of communication externalities. In larger and more educated cities, workers communicate more and in turn this has a positive effect on their wages. Depending on the estimates, we find that 13 to 22% of the effects of a more educated and larger city on wages percolate through this channel. |
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Keywords: | Human capital Cities Communication Identification of externalities |
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