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Abstract

This paper examines the effects of local workforce creativity on county-level earnings. Descriptive analysis of the data shows that most of the high-creativity counties in the United States are part of metropolitan areas, and that employee earnings are high in these places. Regression results indicate that, other things being equal, workforce creativity enhances county-level labor earnings. However, the returns to creativity that we found can be confirmed only in the urban context. An extension of the analysis suggests that the creative workforce wage premium may be capturing the effects of "technical workforce creativity" on earnings.

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