Income Segregation and the Rise of the Knowledge Economy

Simple item page
dc.contributor.authorBerkes, Enrico
dc.contributor.authorGaetani, Ruben
dc.date.accessioned2023-11-13T15:12:46Z
dc.date.available2023-11-13T15:12:46Z
dc.date.issued2023-04
dc.description.abstractWe analyze the effect of the rise of knowledge-based activities on spatial inequality within U.S. cities, exploiting the network of patent citations to instrument for local trends in innovation. We find that innovation intensity is responsible for 20% of the overall increase in urban segregation between 1990 and 2010. This effect is mainly driven by the clustering of employment and residence of workers in knowledge-based occupations. We develop and estimate a spatial equilibrium model to quantify the contribution of productivity and residential externalities in explaining the observed patterns. Endogenous amenities account for two thirds of the overall effect. We illustrate the relevance of the model for policy analysis by studying the impact of four proposed projects for Amazon’s HQ2 on the structure of Chicago.en
dc.description.sponsorshipWe thank Treb Allen, Matthias Doepke, Richard Florida, Ben Jones, Lorenz Kueng, Marti Mestieri, Matthew Notowidigdo as well as seminar participants at Northwestern University, University of Toronto, McMaster University, Ryerson University, 2016 Conference of Swiss Economists Abroad (Bern), 2017 European Meeting of the Urban Economic Association (Copenhagen), 2017 North American Meeting of the Urban Economic Association (Vancouver), EIEF, Bocconi, CREI, INSEAD, and attendees at the 2017 Workshop of the Kauffman Foundation (Chicago) for their helpful comments. This research was funded in part by the Ewing Marion Kauffman Foundation. The contents of the paper are solely our responsibility. Comments are welcome.en
dc.description.urihttps://www.aeaweb.org/articles?id=10.1257/app.20210074en
dc.format.extent72 pagesen
dc.genrejournal articlesen
dc.genrepreprintsen
dc.genreworking papersen
dc.identifierdoi:10.13016/m22s0j-yi5j
dc.identifier.citationBerkes, Enrico, and Ruben Gaetani. “Income Segregation and the Rise of the Knowledge Economy.” American Economic Journal: Applied Economics 15, no. 2 (April 2023): 69–102. https://doi.org/10.1257/app.20210074.en
dc.identifier.urihttps://doi.org/10.1257/app.20210074
dc.identifier.urihttp://hdl.handle.net/11603/30700
dc.language.isoenen
dc.publisherAmerican Economic Associationen
dc.relation.isAvailableAtThe University of Maryland, Baltimore County (UMBC)
dc.relation.ispartofUMBC Economics Department Collection
dc.rightsCopyright © 2023 AEAen
dc.titleIncome Segregation and the Rise of the Knowledge Economyen
dc.typeTexten
dcterms.creatorhttps://orcid.org/0000-0001-5117-9918en

Files

Original bundle

Now showing 1 - 1 of 1
Thumbnail Image
Name:
Income Segregation and Rise of the Knowledge Economy A.pdf
Size:
4.99 MB
Format:
Adobe Portable Document Format
Description:
Download

License bundle

Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
2.56 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

UMBC Economics Department