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Handbook of Regional Science pp 631–648Cite as

Agglomeration and Jobs

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Abstract

This chapter discusses the literature on agglomeration economies from the perspective of jobs and job dynamics. It provides a partial review of the empirical evidence on agglomeration externalities; the functionality of cities; the dynamic relationship between cities, jobs, and firms; and the linkages between cities. We provide the following conclusions. First, agglomeration effects are quantitatively important and pervasive. Second, the productive advantage of large cities is constantly eroded and needs to be sustained by new job creations and innovations. Third, this process of creative destruction in cities, which is fundamental for aggregate growth, is determined by the characteristics of urban systems and broader institutional features. We highlight important differences between developing countries and more advanced economies. A major challenge for developing countries is the transformation of their urban systems into drivers of economic growth.

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Author information

Authors and Affiliations

  1. Department of Economics, University of Toronto, Toronto, ON, Canada

    Gilles Duranton

Authors
  1. Gilles Duranton
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Correspondence to Gilles Duranton .

Editor information

Editors and Affiliations

  1. Institute for Economic Geography and GIScience, Vienna University of Economics and Business, Vienna, Austria

    Manfred M. Fischer

  2. and Business Administration Department of Spatial Economics, Free University Faculty of Economics, Amsterdam, The Netherlands

    Peter Nijkamp

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© 2014 Springer-Verlag Berlin Heidelberg

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Duranton, G. (2014). Agglomeration and Jobs. In: Fischer, M., Nijkamp, P. (eds) Handbook of Regional Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-23430-9_33

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  • DOI: https://doi.org/10.1007/978-3-642-23430-9_33

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-23429-3

  • Online ISBN: 978-3-642-23430-9

  • eBook Packages: Business and Economics

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