The Changing Dynamics of Urban America Executive Summary March 30 , 2004 (original) (raw)

Highlights are presented from an extensive project analyzing the critical factors that accounted for economic growth in American cities in the 1990s. The main findings, organized along five key dimensions, reveal significant changes in the dynamics of urban economies: for the first time, income growth is occurring independently of population growth, and there is evidence of increasing divergence between wealthier and poorer cities. Among the key drivers of urban economic growth, higher education proved to have the greatest positive impact, as knowledge-based activities are increasingly important across all industry sectors. Business diversification appears to favor economic growth, while specialization requires more caution: only certain specializations drive growth, and economic specialization generally may be shifting from industry sectors to business functions and occupations. Income inequality and racial segregation had negative effects on economic growth. Further findings, on s...