Bigger Cities Are Cause Of US Wage Inequality Gap

From "Larger cities drive growing wage gap between the rich and the poor, study shows" in ScienceBlog:

“If we want to understand what’s causing the wage gap, we now know we need to look at the unique economies of our larger cities,” says [University of Rochester Ronni] Pavan.

These metropolitan areas have created “agglomeration” economies that have augmented productivity in dramatic ways, making workers more valuable and therefore able to command higher pay, says Pavan.

Read the complete article here.