Urban scaling laws arise from disparities within cities. Urban inequality in Europe and the US is so pronounced that the majority of the benefits from the agglomeration effects of big cities go to urban elites, leaving a significant portion of the urban population with little to no benefits. A stud
The researchers followed the careers of 1.4 million Swedish wage earners and discovered that those who started off successfully in big cities saw even greater success compared to those in smaller cities. On the other hand, the average wage growth for individuals in both big and small cities was nearly the same.
“The higher-than-expected economic outputs of larger cities critically depend on the extreme outcomes of the successful few.
The researchers traced 1.4 million Swedish wage earners over time and find that those who were initially successful in large cities flourished to a greater extent than the successful in smaller cities. By contrast, the typical individuals in both smaller and larger cities experienced almost identical wage trajectories.
The biggest cities are buzzing because they also host the most innovative, sociable, and skilled people. These outliers add disproportionately to city outputs—a “rich get richer” process that brings cumulative advantage to the biggest cities.
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