Production v Consumption: what drives workers to our cities today?

Human capital has long been recognised to be a key driver of modern economic growth (Florida, 2002). This is based on the idea that the diversity of economic actors within cities, and their high levels of interaction, promote the creation and development of new products and technology. Developing this further, economic growth could be said to be facilitated by these human spillovers, with studies finding that people are more productive when located closely to other highly skilled individuals (Florida, 2002). Therefore, attracting human capital is key to fostering economic growth within a town, city or region. The literature suggests that places are able to attract talent through two methods:

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Cambridge Digital Innovation

Hughes Hall, University of Cambridge

Cambridge Judge Business School

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