Workings of a City: Location, Education, and Production
研究城市中人力资本投资的本地外部性如何影响生产性劳动力的规模和构成，模型将居住选择、技能获取与生产联系起来，发现同伴效应导致职业自我隔离，可能造成整个“贫民区”退出劳动力市场，且高技能者越容易隔离自己，低技能者失业越严重。
We examine the implications of local externalities in human capital investment for the size and composition of the productive labor force. The model links residential choice, skills acquisition, and production in a city composed of several communities. Peer effects induce self-segregation by occupation, whereas efficiency may require identical communities. Even when some asymmetry is optimal, equilibrium segregation can cause entire 'ghettos" to drop out of the labor force. Underemployment is more extensive. the easier it is for high-skill workers to isolate themselves from others. When perfect segregation is feasible, individual incentives to pursue it are self-defeating, and lead instead to a shutdown of the productive sector.