Academic journal article Monthly Labor Review

Economic Role of the City

Academic journal article Monthly Labor Review

Economic Role of the City

Article excerpt

The traditional view of the economic role of cities has emphasized the role of cities as transportation hubs and the ensuing effect of economies of agglomeration in production. As Gerald A. Carlino puts it in his recent article in the Federal Reserve Bank of Philadelphia's Business Review, "To minimize transportation costs, firms needed to be near these hubs, and workers needed to live close to their employers to maintain reasonable commuting distances. Thus, firms and households tended to be highly clustered in cities."

While the presence of an industry in a particular city was often thus the result of accidents of natural resource availability or even simple circumstance, agglomeration economies of localization often made it efficient for other firms to locate in the same city. Such agglomeration effects could include concentrations of specialized labor that could be shared by all producers in an area. Carlino's examples include lighting technicians and set designers in New York and Los Angeles, cities known for their concentrations of entertainment industry enterprises. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.