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Race-Specific Agglomeration Economies: Social Distance and the Black-White Wage Gap / Elizabeth Ananat, Shihe Fu, Stephen L. Ross.
- Format:
- Book
- Author/Creator:
- Ananat, Elizabeth.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w18933.
- NBER working paper series no. w18933
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2013.
- Summary:
- We present evidence that benefits from agglomeration concentrate within race. Cross-sectionally, the black-white wage gap increases by 2.5% for every million-person increase in urban population. Within cities, controlling for unobservable productivity through residential-tract-by-demographic indicators, blacks' wages respond less than whites' to surrounding economic activity. Individual wage returns to nearby employment density and human capital rise with the share of same-race workers. Manufacturing firms' productivity rises with nearby activity only when they match nearby firms racially. Weaker cross-race interpersonal interactions are a plausible mechanism, as blacks in all-white workplaces report less closeness to whites than do even whites in all-nonwhite workplaces.
- Notes:
- Print version record
- April 2013.
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