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This paper studies the dynamic sorting of workers prior to labor market entry that leads to skill differences across cities of different sizes, as well as its consequences on the estimation of agglomeration effects. Using rich administrative data for young, college-educated workers in Colombia, the paper shows that the most talented and best trained sort to big cities primarily because they attend college there and remain for work. The availability of colleges in an individual's high school city, parental resources, and high school city size are the most important determinants of the decision to move for college. The relatively less able remain in medium and small cities or move there for work after attending college in big cities. Pre-labor market sorting thus concentrates population and skill in big cities. As a result of this sorting, agglomeration effects are stronger for college than work city size, even after controlling for mediating factors such as individual ability or college selectivity.
Access To Education --- Agglomeration Effect --- Labor Markets --- Regional Migration --- Rural Labor Markets --- Secondary Education --- Spatial Inequality --- Tertiary Education
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A large literature documents the positive influence of a city's skill structure on its rate of economic growth. By contrast, the effect of a city's age structure on its economic growth has been a hitherto largely neglected area of research. This paper hypothesizes that cities with more working-age adults are likely to grow faster than cities with more children or seniors. The paper sets out the potential channels through which such differential growth may occur. Using data from a variety of historical and contemporary sources, it shows that there exists marked variation in the age structure of the world's largest cities, across cities and over time. It then studies how age structure affects economic growth for a global cross-section of mega-cities. Using various identification strategies, the analysis finds that mega-cities with higher dependency ratios, that is, with more children and/or seniors per working-age adult, grow significantly slower. Such effects are particularly pronounced for cities with high shares of children. This result appears to be driven mainly by the direct, negative effects of a higher dependency ratio on the size of the working-age population and the indirect effects on work hours and productivity for working-age adults within a city.
Age Structure --- Agglomeration Effect --- Aging --- Demographics --- Dependency Ratio --- Economic Theory and Research --- Health, Nutrition and Population --- Human Capital --- Macroeconomics and Economic Growth --- Urban Development --- Urban Economic Development --- Urbanization
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