How agglomeration works in America, the consequences for public policy, and the relevance of American cities to the UK.

1. Owen Bell
What can America’s cities teach
the UK about agglomeration,
skills and urban productivity?

2. Structure of the presentation
• Context.
• Methodology.
• How agglomeration in America works.
• The consequences of agglomeration.
• Conclusion- what the findings mean for the UK?

3. Why study America?

4. Methodology and sources

5. All cities

6. Cities with a population over 600000

7. Bigger cities attract more high-skilled jobs,
though there are some exceptions

8. The proportion of high skilled, exporting
jobs is a key determinant of productivity

9. Educational attainment is also crucial
to productivity

10. Wage variation between cities is driven by wage
variation in high skilled occupations

11. Spatial inequality is principally between cities, not
states or regions
• The standout performers here include San
Francisco, Washington DC, New York City and
Minneapolis-St Paul

12. Demand for housing is primarily driven by strong demand,
but land-use restrictions can artificially inflate prices

13. Conclusion- what does this mean for
the UK?
• Britain’s largest cities can benefit enormously from
high-skilled agglomeration.
• Our high-dense population is an asset; more
people can be within commuting distance from a
high-productivity city.
• The prevailing discourse on spatial inequality is
oversimplified and misplaced.

14. Any questions?