Ahrend, Rudiger; Lembcke, Alexander C. - 2016
estimates how city size affects worker productivity (agglomeration benefits) in Germany, based on individual-level wage data … elasticity for agglomeration benefits is around 0.02, implying that comparable workers in Hamburg (3 million residents) are about … 6% more productive than in Recklinghausen (150 000). But agglomeration benefits are, on average, offset by higher prices …