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Variations in metropolitan populations might help clarify gaps in productivity and incomes. Western Europe’s per-particular person GDP is 72% of America’s, on a purchasing-power-parity basis. A current research by the McKinsey World Institute, the consultancy’s analysis arm, reckons that some three-quarters of this hole will be chalked up to Europe’s relatively diminutive cities. Extra People than Europeans stay in big cities: there is a specific divergence in the measurement of every region’s middleweight” cities, people who teem just a little lower than the likes of New York and Paris (see chart). And the premium earned by Individuals in massive cities relative to these in the countryside is larger than that earned by city Europeans.
There are, in fact, tradeoffs. By eschewing … Read More