Nber Working Paper Series Urban Productivity in the Developing World

Africa is urbanizing rapidly, and this creates both opportunities and challenges. Labor productivity appears to be much higher in developing-world cities than in rural areas, and historically urbanization is strongly correlated with economic growth. Education seems to be a strong complement to urbanization, and entrepreneurial human capital correlates strongly with urban success. Immigrants provide a natural source of entrepreneurship, both in the U.S. and in Africa, which suggests that making African cities more livable can generate economic benefits by attracting talent. Reducing the negative externalities of urban life requires a combination of infrastructure, incentives, and institutions. Appropriate institutions can mean independent public authorities, public-private partnerships, and non-profit entities depending on the setting. Edward L. Glaeser Department of Economics 315A Littauer Center Harvard University Cambridge, MA 02138 and NBER [email protected] Wentao Xiong Deaprtment of Economics Harvard University Littauer Center 1805 Cambridge St Cambridge, MA 02138 [email protected] Supplementary materials available at http://www.nber.org/papers/w23279: data appendix