The Geography of Business Dynamism and Skill-Biased Technical Change

• 成果类型: Article; Early Access
• 署名作者: Rubinton, Hannah
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - St. Louis
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdaf063
• 发表日期: 2025
• 关键词: productivity; selection; GROWTH; TRADE; income; wages; determinants; CONVERGENCE; decline; welfare

摘要

This paper shows that the growing disparities between big and small cities in the U.S. since 1980 can be explained by firms endogenously responding to a skill-biased technology shock. With the introduction of a new skill-biased technology that is high fixed cost but low marginal cost, firms endogenously adopt more in big cities, cities that offer abundant amenities for high-skilled workers, and cities that are more productive in using high-skilled labour. In cities with more adoption, small and unproductive firms are more likely to exit the market, increasing the equilibrium rate of turnover or business dynamism-a selection effect similar to Melitz (2003). Differences in technology adoption and selection account for three key components of the growing regional disparities, known as the Great Divergence: (1) big cities saw a larger increase in the relative wages and supply of skilled workers, (2) big cities saw a smaller decline in business dynamism, and (3) firms in big cities invest more intensively in information and communication technology.