What does migration have to do with company size in an economy?

by Matthew Carter  - November 1, 2024

One of the most clear findings in American economic history is that urbanization coincided with and contributed to the growth and proliferation of big corporations.

Urbanization is a form of what demographers call internal migration. It’s migration inside of a country. External migration is migration across a national border.

Migration, like any other lessening of social cohesion, increases transaction costs in an economy. Higher transaction costs favor the formation and proliferation of big companies.

Are economic exchanges actually costless?
Are very big corporations incentivized to favor mass migration?

About 

Matthew Carter

I am the trusted finance advisor of small and midsized business leaders who want intelligent and intelligible economics expertise.

P.S. I also love dogs.

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