Social Diversity and Economic Development in the Metropolis

Abstract

Theories of regional economic development are increasingly focused on understanding the reasons for metropolitan economic growth. The “creative capital” perspective argues that such growth is extremely dependent on the presence of four main conditions: technology, talent, tolerance, and good quality of place. This article examines evidence for the importance of tolerance in promoting metropolitan economic development. Through his analysis, Richard Florida studied the association of economic growth with the presence of gays and lesbians, bohemians, immigrants, and racial minorities. Literature confirms that diversity is an important component of economic development, although this does not appear to be fully explained by Florida’s creative-cities model.