Does It Matter Where IT Workers are Located?

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Does It Matter Where IT Workers are Located?

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dc.creator Echeverri-Carroll, Elsie L.
dc.creator Ayala, Sofia G.
dc.creator Kshetramade, Mayuresh
dc.creator Murthy, Priyanka
dc.date.accessioned 2012-02-23T17:34:45Z
dc.date.available 2012-02-23T17:34:45Z
dc.date.created 2007
dc.date.issued 2012-02-23
dc.identifier.uri http://hdl.handle.net/2152/14936
dc.description.abstract The predominant view in the literature is that cities affect labor productivity because spatial proximity facilitates the transfer of ideas which make workers more productive. We also anticipate that information technology, or IT (both equipment and labor), by facilitating human communication and speeding up the flow of ideas and data, also contributes to enhancing the productivity of workers within cities. Thus, workers will be more productive in cities with a large endowment of these two factors of production. The objective of this paper is twofold. First, it describes the spatial character- istics of IT workers in the United States. Second, it tests the hypothesis that in cities with a higher endowment of IT workers wages (a proxy for productivity) would be higher after controlling for the characteristics of individual workers and city-specific characteristics that also affect wages. Using data from the 2000 US Census of Population (5% PUMS), we find evidence of a wage premium, especially for college-educated workers, associated with living in a city that has a large concentration of IT workers. On the basis of our findings, we propose to move the discussion on the future of cities from the effect of IT equipment on face-to-face communication to the impact on cities of losing IT workers.
dc.language.iso eng
dc.subject technology transfer
dc.subject information technology
dc.title Does It Matter Where IT Workers are Located?
dc.type Article
dc.description.department IC2 Institute

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