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Communication externalities in cities

Charlot, Sylvie and Duranton, Gilles (2003) Communication externalities in cities. CEPDP, 592. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753016702

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Identification Number: 592

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 individual wages. By estimating both an earnings and a communication equation, we find evidence of communication externalities. Being in a larger and more educated city makes workers communicate more and in turn this has a positive effects on wages. However, only a small fraction of the overall effects of a more educated and larger city on wages percolates through this channel.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk
Additional Information: © 2003 the authors
Subjects: H Social Sciences > HD Industries. Land use. Labor
JEL classification: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R19 - Other
R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R29 - Other
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Geography and Environment
Date Deposited: 28 Jul 2008 11:10
Last Modified: 01 Oct 2010 09:14
URI: http://eprints.lse.ac.uk/id/eprint/20016

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