Urban Labor Markets
Upjohn Institute Working Paper 95-32
Randall W. Eberts
June 6, 1994
Abstract
Urban labor markets are characterized by the spatial proximity of households and
businesses, which offers firms and workers advantages that lead to more efficient markets,
enhanced productivity, and greater economic success. Nevertheless, the nation's city, while
generating a large proportion of the nation's wealth, houses much of the nation's economic
disadvantaged workers. This paper describes the current conditions of urban labor markets
and outlines a national urban policy agenda that addresses these concerns by taking into
account cities' spatial dimension. The paper argues that a national urban labor policy should
emphasize the effects of physical and informational proximity on growth, the benefits of
efficient urban markets, and the importance of the access of workers to urban labor markers.
These characteristics distinguish a national urban policy from simply a national policy targeted
at people who happen to live in cities.
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