Cities/Urban / 08.07.2018

By Anjum¬†Altaf Urban productivity is determined by a number of variables, including population size and urban sprawl. With effective infrastructure investment, cities can enable more workers to access available jobs, creating integrated labour markets and increasing urban productivity.   From an economic perspective, the concept of a metropolitan area is related to the existence of an integrated labour market. If the labour market extends beyond the municipal boundaries of a city, it becomes part of a metropolitan labour market. Metropolitan labour markets are important because output per worker increases with the size of the labour market; increased population density leads to a higher number of economic interactions per unit of area. However, the population size of a city is only one determinant of its productivity. The other critical determinant is urban sprawl, which takes into account how far jobs and residences are located, and the speed of transport, which influences...