Urbanization and Urban Employment a Significant Potential for Economic Growth?

Abstract

Positive effect of cities on economic growth mostly through either exports or urban employment is widely known. However, existing literature generally focuses only on the growth potentials of exports done from these centers. This study aims to explain growth potentials of cities by natural labor pools that exist in these centers with all their various attractive features. This explanation depends on the fact that human capital that is mostly exists in cities has the increasing returns in production. The thesis proposed in this study is tested using Turkish Households Labor Force Statistics and relevant econometric techniques. The results shows that relative to rural ones, highly featured, educated, middle-aged urban labor force with its large varieties is an important potential for economic growth.