Abstract
ABSTRACT Borrowed size refers to the idea that small cities near larger metropolitan centres can reap the advantages of large agglomerations, but without the costs of agglomeration. The study explores whether broadband internet helps such smaller cities to enjoy the labour market benefits of a larger city. Using Swedish micro-data from 2007 to 2015, together with unique data on broadband, suggestive evidence is found that broadband indeed allows smaller cities to reap such benefits. Borrowed size is primarily driven by the overall penetration of broadband in the place of residence, rather than by broadband availability at the residence.
Highlights
In 1973, William Alonso coined the concept of ‘borrowed size’, referring to the situation ‘whereby a small city or metropolitan area exhibits some of the characteristics of a larger one if it is near other population concentrations’ (Alonso, 1973, p. 200)
Broadband and labour market outcomes Our first hypothesis wat that residential broadband availability increases commuting distances as it enables working from home, and increases employment rates because distant employment opportunities become more accessible
To this end we estimated the effect separately for urban cores, urban areas and rural areas, and we allowed the effect to differ with distance to the nearest core of a functional urban area (FUA)
Summary
In 1973, William Alonso coined the concept of ‘borrowed size’, referring to the situation ‘whereby a small city or metropolitan area exhibits some of the characteristics of a larger one if it is near other population concentrations’ (Alonso, 1973, p. 200). He argued that to reap the benefits of agglomeration in large cities, it is often not necessary to locate in these cities themselves, but it suffices to be within reasonable proximity. This concept has been used to explain why medium-sized cities in Europe do not perform worse than the largest cities, contrary to the theory of agglomeration economies (Dijkstra, Garcilazo, & McCann, 2013; Meijers & Burger, 2017). Even while large cities are increasingly perceived as engines of economic growth, it is argued that Europe’s medium-sized cities can continue to flourish, provided they are within reasonable proximity of larger urban areas (Dijkstra et al, 2013).
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