@techreport{NBERw12246, title = "Division of Labor and the Rise
of Cities: Evidence from U.S. Industrialization, 1850-1880",
author = "Sukkoo Kim", institution = "National Bureau of
Economic Research", type = "Working Paper", series = "Working
Paper Series", number = "12246", year = "2006", month = "May",
URL = "http://www.nber.org/papers/w12246", abstract =
{Industrial revolution in the United States first took hold in
rural New England as factories arose and grew in a handful of
industries such as textiles and shoes. However, as factory scale
economies rose and factory production techniques were adopted by
an ever growing number of industries, industrialization became
concentrated in cities throughout the Northeastern region which
came to be known as the manufacturing belt. While it is
extremely difficult to rule out other types of agglomeration
economies such as spillovers, this paper suggests that these
geographic developments associated with industrial revolution in
the U.S. are most consistent with expl