2022
DOI: 10.1038/s42949-022-00049-x
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Urbanization favors high wage earners

Abstract: As cities increase in size, total wages grow superlinearly, meaning that average wages are higher in larger cities. This phenomenon, known as the urban wage premium, supports the notion that urbanization and the growth of cities contribute positively to human well-being. However, it remains unclear how the distribution of wages changes as cities grow. Here we segment the populations of U.S. cities into wage deciles and determine the scaling coefficient of each decile’s aggregate wages versus city size. We find… Show more

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Cited by 14 publications
(7 citation statements)
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“…Recent research has taken important steps along the lines argued for here. First, empirical methodology has been developed to capture within-city variation in scaling [23][24][25] and to ensure the robust estimation of scaling exponents in the light of heavy-tailed urban indicators 57 . Second, a recently proposed theoretical framework 17 has acknowledged heterogeneity and inequality in urbanization processes.…”
Section: Discussionmentioning
confidence: 99%
See 1 more Smart Citation
“…Recent research has taken important steps along the lines argued for here. First, empirical methodology has been developed to capture within-city variation in scaling [23][24][25] and to ensure the robust estimation of scaling exponents in the light of heavy-tailed urban indicators 57 . Second, a recently proposed theoretical framework 17 has acknowledged heterogeneity and inequality in urbanization processes.…”
Section: Discussionmentioning
confidence: 99%
“…Power laws are common in nature and society, present not only as scaling laws between cities but also as extremely skewed distributions within agglomerations 22 . Consequently, sums and means are poor and potentially misleading indicators of the relevant quantities of cities [23][24][25] .…”
Section: The Role Of City Tails For Superlinear Scalingmentioning
confidence: 99%
“…bigger the city, the more unjust it is to the poor (Mora et al, 2021;Sarkar et al, 2018;Shutters et al, 2022). But, so far, we have no theory or analytics to propose any urban welfare function(s) that can counter the inequality, injustice, and unsustainability outcomes that emerge from such natural power law distributions of city sizes.…”
Section: Declaration Of Conflicting Interestsmentioning
confidence: 99%
“…Income inequality presents a key challenge to urban sustainability in the developed economies (Cantante, 2020 ; Chancel et al, 2018 ). Cities having big income divide may also be characterised by unequal access to higher education, employment, or safety protection opportunities (Schneider, 2016 ; Shutters et al, 2022 ; Wan et al, 2022 ). To address such inequality, accurate representation of income distribution in high granularity and its determinants are crucial for evidence-based policy-making (Suel et al, 2018 ).…”
Section: Introductionmentioning
confidence: 99%