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1. A seminal paper on the effect of human capital on gross domestic product per capita is Mankiw, Romer and Weil (1992).

2. See Florida (2002), pp. 68-9.

3. For a discussion of past research on the new economy, see Gellatly (2003). Also see Beckstead et al (2003).

4. A number of recent studies tend to emphasize the role of cities in the national economy. As well as Florida (2005), see for example, Beckstead and Brown (2006), Partridge, Olfert and Alasia (2007) and Gertler et al (2002).

5. There are 76 major groups in SIC-E (1980). However, Printing, Publishing and Allied Industries is the one major group that is entirely composed of cultural industry groups. Therefore, this major group was entirely removed from the non-culture sector.

6. Several practical limitations affected the actual calculation of culture employment levels in non-culture industries at the major group level. The principal difficulty stems from the fact that the Framework specifies culture industries according to NAICS only. However, since this study used the SIC-E rather than NAICS, an empirical concordance between SIC-E and NAICS was necessary to determine which industries in SIC-E were culture industries. Since no concordance is ever perfect, this resulted in deviation from the theoretical definition of the culture sector specified in the Framework . A more minor difficulty stems from the fact that the Census coded workers to a higher level of industrial aggregation than the level of aggregation specified in the Framework . This means that our culture industries may at times be broader in scope than envisaged by the Framework .

7. These are SIC-779 (Other Business Services) and SIC-99 (Other Service Industries).

8. The total size of the Canadian workforce was 13,005,505 in 1991, 13,318,740 in 1996 and 14,695,135 in 2001.

9. See Beckstead and Brown (2003) for a discussion of how the industrial diversity of local economies increases with population size.

10. The pattern is similar for 1996, but this year is not shown for purposes of clarity.