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The New Geography of Jobsby Enrico Moretti
Synopses & Reviews
From a rising young economist, an examination of innovation and success, and where to find them in America.
An unprecedented redistribution of jobs, population, and wealth is under way in America, and it is likely to accelerate in the years to come. Americas new economic map shows growing differences, not just between people but especially between communities. In this important and persuasive book, U.C. Berkeley economist Enrico Moretti provides a fresh perspective on the tectonic shifts that are reshaping Americas labor market—from globalization and income inequality to immigration and technological progress—and how these shifts are affecting our communities. Drawing on a wealth of stimulating new studies, Moretti uncovers what smart policies may be appropriate to address the social challenges that are arising. Were used to thinking of the United States in dichotomous terms: red versus blue, black versus white, haves versus have-nots. But today there are three Americas. At one extreme are the brain hubs—cities like San Francisco, Boston, Austin, and Durham—with a well-educated labor force and a strong innovation sector. Their workers are among the most productive, creative, and best paid on the planet. At the other extreme are cities once dominated by traditional manufacturing, which are declining rapidly, losing jobs and residents. In the middle are a number of cities that could go either way. For the past thirty years, the three Americas have been growing apart at an accelerating rate. This divergence is one the most important recent developments in the United States and is causing growing geographic disparities is all other aspects of our lives, from health and longevity to family stability and political engagement. But the winners and losers arent necessarily who youd expect. Morettis groundbreaking research shows that you dont have to be a scientist or an engineer to thrive in one of these brain hubs. Among the beneficiaries are the workers who support the "idea-creators"—the carpenters, hair stylists, personal trainers, lawyers, doctors, teachers and the like. In fact, Moretti has shown that for every new innovation job in a city, five additional non-innovation jobs are created, and those workers earn higher salaries than their counterparts in other cities. It wasnt supposed to be this way. As the global economy shifted from manufacturing to innovation, geography was supposed to matter less. But the pundits were wrong. A new map is being drawn—the inevitable result of deep-seated but rarely discussed economic forces. These trends are reshaping the very fabric of our society. Dealing with this split—supporting growth in the hubs while arresting the decline elsewhere—will be the challenge of the century, and The New Geography of Jobs lights the way.
An economist at Berkeley looks at the major shifts taking place in the U.S. economy and reveals the surprising winners and losersand#8212;specifically, which kinds of jobs will drive economic growth and where theyand#8217;ll be locatedand#8212;while exploring how communities can transform themselves into dynamic innovation hubs.
andquot;A persuasive look at why some U.S. cities have prospered in recent decades while others have declined.andquot;andmdash;Bloomberg Businessweek
Weandrsquo;re used to thinking of the United States in opposing terms: red versus blue, haves versus have-nots. But today there are three Americas. At one extreme are the brain hubsandmdash;cities like San Francisco, Boston, and Durhamandmdash;with workers who are among the most productive, creative, and best paid on the planet. At the other extreme are former manufacturing capitals, which are rapidly losing jobs and residents. The rest of America could go either way. For the past thirty years, the three Americas have been growing apart at an accelerating rate. This divergence is one the most important developments in the history of the United States and is reshaping the very fabric of our society, affecting all aspects of our lives, from health and education to family stability and political engagement. But the winners and losers arenandrsquo;t necessarily who youandrsquo;d expect.
Enrico Morettiandrsquo;s groundbreaking research shows that you donandrsquo;t have to be a scientist or an engineer to thrive in one of the brain hubs. Carpenters, taxi-drivers, teachers, nurses, and other local service jobs are created at a ratio of five-to-one in the brain hubs, raising salaries and standard of living for all. Dealing with this splitandmdash;supporting growth in the hubs while arresting the decline elsewhereandmdash;is the challenge of the century, and The New Geography of Jobs lights the way.
andquot;Moretti has written a clear and insightful account of the economic forces that are shaping America and its regions, and he rightly celebrates human capital and innovation as the fundamental sources of economic development.andquot;andmdash;Jonathan Rothwell, The Brookings Institution
About the Author
Enrico Moretti is a professor of economics at the University of California, Berkeley, whose research has been supported by the National Science Foundation, the National Institutes of Health and has been featured in the New York Times, the Wall Street Journal, and Slate, among other publications.
Table of Contents
1. American Rust 19
2. Smart Labor: Microchips, Movies, and Multipliers 45
3. The Great Divergence 73
4. Forces of Attraction 121
5. The Inequality of Mobility and Cost of Living 154
6. Poverty Traps and Sexy Cities 178
7. The New “Human Capital Century” 215
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