Culture, Language, and the Location of High-Order Service Functions: The Case of Montreal and Toronto

Abstract

Today, there is plenty of evidence of metropolization—the concentration of economic activity, particularly of high-order services—in the world’s largest cities. Furthermore, within most national systems, the urban hierarchy is stable, especially toward the top: cities that were the largest 100 years ago continue to dominate their respective systems today. In Canada, however, this is not the case. Over the past 40 years, there has been a reversal at the top of the urban hierarchy, with Montreal losing its dominance in favor of Toronto. In this article, we document the reversal and elaborate a model that accounts for the spatial shifts in high-order services. Our analysis reveals the continued relevance of culture and language and suggests that there are limits to the concentration of high-order service activity. This finding is corroborated by a more detailed look at occupational shifts within a variety of key economic sectors in Montreal and Toronto. We conclude by suggesting that these results and the model we put forward to explain them have implications that go beyond Canada: even in a globalizing world in which the constraints of distance are lessened, cultural and linguistic factors will continue to play an important role in determining the spatial distribution of high-order economic activity.