Industrial Specialization Boosts Productivity, Transforming Manufacturing in US Cities
The article looks at how different types of industries in American cities influenced productivity growth between 1880 and 1930. The researchers found that cities with a strong focus on specific industries initially saw faster productivity growth. However, only very large cities with a wide range of industries showed a positive link between diversity and productivity growth. They concluded that certain cities benefited from dynamic economic advantages that boosted productivity in manufacturing by around 4% from 1890 to 1920.