Cities, Skills, and Sectors in Developing Economies∗ Donald R. Davisy Jonathan I. Dingelz Antonio Misciox Columbia and NBER Chicago Booth and NBER BCG December 31, 2016 PRELIMINARY AND INCOMPLETE Abstract In developed economies, larger cities are skill-abundant and specialize in skill- intensive activities. This paper characterizes the spatial distributions of skills and sectors in Brazil, China, and India. To facilitate comparisons with developed-economy findings, we construct metropolitan areas from finer geographic units for each economy. We then compare and contrast the spatial distributions of educational attainment, in- dustrial employment, and occupational employment across Brazil, China, India, and the United States. ∗We thank Luis Costa, Kevin Dano, Shirley Yarin, and Yue Yuan for excellent research assistance. Dingel thanks the Kathryn and Grant Swick Faculty Research Fund at the University of Chicago Booth School of Business for supporting this work.
[email protected] [email protected] [email protected] 1 1 Introduction This paper studies the distribution of skills across cities of different sizes in three large developing economies: Brazil, China, and India. These three countries jointly account for approximately 40 percent of world population and are diverse in their levels of income. The process of urbanization in developing economies is important due to both the number of people involved and the opportunity to shape outcomes. The World Bank projects that 2.7 billion additional people will live in developing economies' cities by 2050. While urbanization does not imply growth, the two are nonetheless strongly linked (Henderson, 2014). In developed economies, larger cities are skill-abundant and specialize in skill-intensive activities.