Let smart people be lured to cities, Fed economists say

Let smart people be lured to cities, Fed economists say

Buildings stand in the skyline of Austin, Texas, with the Colorado River in the foreground. (Bloomberg photo) As America’s most skilled knowledge workers gravitate to the biggest cities, policy makers elsewhere in the country are trying to stem the flow out of concern about a widening wealth gap.

Those efforts are misguided, economists at Princeton University and the Federal Reserve Bank of Richmond argue in a new paper.

The study says “cognitive non-routine” or CNR workers are more productive when they’re clustered in the same place, typically a large metropolis. They’re “too valuable” to be distributed across smaller towns, which would […]

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