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The skilled city : Comments
By Andrew Leigh, published 10/12/2010In skilled cities, size matters. Double the size of a skilled city, and wages rise by about 10 per cent.
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Getting much bigger is just stupid! We’d need to exercise great skill to manage twice as many people, twice as much urban and industrial sprawl, twice as much infrastructure, etc, etc. We’d need all our skills to be sharpened just make sure that we broke even and didn’t suffer big quality-of-life losses!
Ok, so maybe wages would increase a bit with a massive expansion of our cities, all else being equal. But so would costs. In fact, there can be little doubt that in cities that already have stressed infrastructure and stressed people, the costs would be considerably greater.
Skills and sensibly-sized cities go together.