We present a modified open monocentric city model that assumes that land is available for conversion into new housing throughout the city. The model predicts that positive local income shocks (i) increase the city's share of multi-family housing in new construction and (ii) lead to the...

i. This discussion paper is a completely revised version of SERCDP0047, published April 2010. This paper argues that agglomeration externalities are important even in the rural periphery. The analysis focuses on the forced relocation of more than a tenth of the Finnish population after World War...

This paper examines the relation between ambition, as a form of dynamic human capital, and the escalator role of high order metropolitan regions, as originally identified by Fielding (1989). It argues that occupational progression in such places particularly depends on concentrations both of...

High levels of net migration to the UK have contributed to growing cultural diversity, and researchers are turning their attention to the long-term effects of diversity on productivity. Yet little is known about these issues. This paper asks: what are the links between the composition of firms'...

What is the effect of an increase in the stock of human capital on the innovative performance of a local economy? This paper tests the hypothesis of a causal link between an increase in the average stock of human capital, due to skilled migration inflows, and the innovative performance of local...

British cities are becoming more culturally diverse, with migration a main driver. Is this growing diversity good for urban economies? This paper explores, using a new 16-year panel of UK cities. Over time, net migration affects both local labour markets and the wider economy. Average labour...

London is one of the world's major cities, and one of its most diverse. London's cultural diversity is widely seen as a social asset, but there is little hard evidence on its importance for the city's businesses. Theory and evidence suggest various links between urban cultural diversity and...

British cities have a surprisingly long history of cultural diversity. Recently they have become significantly more multicultural, with 'super-diversity' emerging in many urban neighbourhoods. Public interest in these changes is high, but there has been little research assessing their impacts....

i. A completely revised version of this paper is available as SERCDP0080, May 2011. We examine the long-term effects of resettling 11 percent of the Finnish population from areas ceded to the Soviet Union during World War II. Our empirical strategy exploits features of the resettlement policy as...

Growing cultural diversity is seen as important for innovation. Research has focused on two potential mechanisms: a firm effect, with diversity at the firm level improving knowledge sourcing or ideas generation, and a city effect, where diverse cities helping firms innovate. This paper uses a...