Increased productivity is one of the main drivers of economic growth. Considering the increasing importance of the service sector in many economies studies of productivity in service firms are essential, but still rare. Questions concerning the underlying reasons for productivity differences in...

Using Jones (2014) generalized human capital accounting, we extend the urban accounting model of Desmet and Rossi-Hansberg (2013) to account for the geographic distribution of skills across US metropolitan areas. The methodology allows the productivity of high-skill workers to depend on location...