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Journal of Economic Geography Advance Access originally published online on June 1, 2006
Journal of Economic Geography 2006 6(4):469-491; doi:10.1093/jeg/lbl009
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© The Author (2006). Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oxfordjournals.org

Division of labor and the rise of cities: evidence from US industrialization, 1850–1880

Sukkoo Kim*

* Department of Economics, Washington University in St Louis, Campus Box 1208, One Brookings Drive, St Louis, MO 63130-4899, USA email <soks{at}artsci.wustl.edu>

Industrial revolution in the USA first took hold in rural New England as factories arose and grew in a handful of industries such as textiles and shoes. However, as factory scale economies rose and factory production techniques were adopted by an ever-growing number of industries, industrialization became concentrated in cities throughout the Northeastern region which came to be known as the manufacturing belt. While it is extremely difficult to rule out other types of agglomeration economies such as spillovers, this paper suggests that these geographic developments associated with industrial revolution in the USA are most consistent with explanations based on division of labor, job search, and matching costs.

Keywords: division of labor, industrialization, rise of cities,
JEL classifications: N600, N900, R380
Date submitted: 21 March 2005     Date accepted: 9 May 2006


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