by
Ryan Avent
[...] Big, skilled places are good at making workers more productive. Workers in places like Silicon Valley earn a hefty wage premium over similar workers in other cities, but new arrivals don't get the premium all at once. Instead it builds over time: evidence that the city is contributing to the knowledge and employability of the workers within it.
I mean it's true if you have a very value-neutral definition of the word "productive"? you could also just view it as rent ... or sucking more labour hours out of each worker