@article{cefd4b83bd5542429129d0aae0d4a163,
title = "Cities, matching and the productivity gains of agglomeration",
abstract = "The striking geographical concentration of economic activities suggests that there are substantial benefits to agglomeration. However, the nature of those benefits remains unclear. In this paper we take advantage of a new data set to quantify the role of one of the main contenders-the matching of workers and jobs. We show that thicker urban labor markets are associated with more assortative matching in terms of worker and firm quality. When we estimate establishment-level production functions we also find evidence of complementarities between worker and firm quality. Putting together the production and matching relationships, we show that production complementarity and assortative matching is an important source of the urban productivity premium.",
keywords = "Agglomeration, Matching, Urban productivity",
author = "Fredrik Andersson and Simon Burgess and Lane, {Julia I.}",
note = "Funding Information: This document reports the results of research and analysis undertaken by the US Census Bureau staff. It has undergone a Census Bureau review more limited in scope than that given to official Census Bureau publications, and is released to inform interested parties of ongoing research and to encourage discussion of work in progress. The data used are a part of the US Census Bureau{\textquoteright}s Longitudinal Employer-Household Dynamics Program (LEHD), which is partially supported by the National Science Foundation Grant SES-9978093 to Cornell University (Cornell Institute for Social and Economic Research), the National Institute on Aging (R01-AG18854-01), and the Alfred P. Sloan Foundation. The views expressed herein are attributable only to the author(s) and do not represent the views of the US Census Bureau, its program sponsors or data providers. Some or all of the data used in this paper are confidential data from the LEHD Program. The US Census Bureau is preparing to support external researchers{\textquoteright} use of these data; please contact US Census Bureau, LEHD Program, FB 2138-3, 4700 Silver Hill Rd., Suitland, MD 20233, USA. Thanks are due to Harry Holzer, and seminar participants at the University of Bristol for helpful comments.",
year = "2007",
month = jan,
doi = "10.1016/j.jue.2006.06.005",
language = "English (US)",
volume = "61",
pages = "112--128",
journal = "Journal of Urban Economics",
issn = "0094-1190",
publisher = "Academic Press Inc.",
number = "1",
}