Big Cities Lure Smart People. Don’t Fight It, Fed Economists Say
- Knowledge workers produce more when clustered, new paper says
- They can subsidize low-paid peers massed outside metro areas
Photographer: Busà/Moment RF via Getty Images
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As America’s most skilled knowledge workers gravitate to the biggest cities, policy makers elsewhere in the country are trying to stem the flow out of concern about a widening wealth gap.
Those efforts are misguided, economists at Princeton University and the Federal Reserve Bank of Richmond argue in a new paper.