Which answer best describes Glaeser’s (1998) reasons for why firms located in a city are willing to pay a wage premium to their workers? a) They make more money in the city, so can pay their workers more. b) Cities offer firms lower transportation costs, connection of labor, informational spillovers, and labor education. c) Firms enjoy the social benefits that are offered to them for being in the city. d) Firms believe that workers living in cities are better educated than workers who don’t live in a city.
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