The economic complexity of US metropolitan areas

Abstract

We calculate measures of economic complexity for US metropolitan areas for the period 1998–2015 based on employment data. We show that the concept translates well to the regional setting and to local and traded industries. Large cities and the Northeast have the highest complexity, while most traded industries are more complex than most local ones. In cross-section, metropolitan complexity is associated with higher incomes, though to a lesser extent recently than in the past. However, within-city increases in complexity from year to year are associated with income decreases. Our findings highlight the need for caution when interpreting the relationship between complexity and socioeconomic outcomes.