By contrast, few high-paying jobs have been created in Visalia, and the percentage of local workers with a college degree has barely changed in thirty yearsone of the worst performances in the country. 0000000553 00000 n If there is a poster child of globalization, it is the iPhone. A second reason that the rise of innovation matters to all of us has to do with the almost magical economics of job creation. The Cal-Berkeley economic professor's book is extremely necessary for politicians and commentators alike, book that artfully slays myriad myths that cloud the economic debate. In The New Geography of Jobs, award-winning Berkeley economist Enrico Moretti looks at the major shifts taking place in the US economy and reveals the surprising winners and losers specifically, which kinds of jobs will drive economic growth and where they'll be located while exploring how communities can transform themselves into dynamic innovation hubs."A timely and smart . For someone like David Breedlove, a highly educated professional with solid career options, choosing Visalia over Menlo Park was a perfectly reasonable decision in 1969. Incredibly, when it reaches the American consumer, only one American worker has physically touched the final product: the UPS delivery guy. Innovative centers large (Silicon Valley, Boston and Washington) and small (Austin, Raleigh and Salt Lake City) are pulling away in terms of productivity and incomes, and bringing those lucky enough to call such places home along with them. The process by which the iPhone is produced illustrates how the new global economy is reshaping the location of jobs and presenting new challenges for American workers. But innovation is not limited to high technology. The New Geography of Jobs is the sort of economics that should be widely read, digested, and discussed. 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. All rights reserved. In this book, the author provides a fresh perspective on the tectonic shifts that are reshaping America's labor market, from globalization and income inequality to immigration and technological progress, and how these shifts are affecting our communities. He's clear and concise. Most of all, the geography of jobs is changing in profound and irreversible ways. This is because, at the time, many military manufacturing jobs were moving from the Northeast U.S. (the region known as the Rust Belt) to the South and the West.Growth in the South and West then further continued after the war and later grew substantially near the U.S./Mexico . While much of his narrative about the innovation sector as the key driver in regional growth will be familiar to readers of Richard Florida, Moretti provides a valuable counter-balance to Floridas theories about the creative class. Mr. Moretti says the data support the argument that technology innovators are one of the most important engines of job creation in the U.S.with three of those five jobs going to people without college degrees.Jessica E. Vascellaro, Wall Street Journal, The book is excellent, I strongly recommend it. Forbes (Adam Ozimek)"What explains the wide range of economic growth and prosperity across U.S. regions, and why is it so hard for struggling metro areas to reverse multi-decade trends? Further improvements in information technology could only accelerate the dispersion of population from crowded, unsafe cities. He was not the only one. Americas labor market is undergoing a momentous shift. 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. These factories are where many American manufacturing jobs have gone. You might think that the rise of innovation is pretty exciting if you work for, say, Google or a biotech company but that it doesnt matter all that much if youre a teacher or a doctor or a police officer. "Forbes, "Enrico Moretti is a first-rate empirical researcher who has taught us much about the geographic impact of human capital and a variety of public investments. The new geography of jobs. In a nation sharply divided along political lines, concern about the economy is shared almost equally by those on the left and on the right. But the economic picture is more complex, more interesting, and more surprising than the current debate suggests. "The Atlantic, "Professor Moretti is a visionary scholar and one of the most important new voices in economics. But the pundits were wrong. American Rust19 2. For the past thirty years, the three Americas have been growing apart at an accelerating rate. Breedlove liked his job and had even turned down an offer from Hewlett-Packard, the iconic high-tech giant in the Valley. One new high-tech job in a metropolitan area, however, may spur the creation of five additional service-sector jobs. RUST BELT. While having more high-skilled workers around tends to raise everyone's salaries, Moretti's research shows that low-skilled workers benefit four to five times more than college graduates. Jobs abound, and the average salary of its residents is the second highest in America. The new geography of jobs. From blind faith in ever-rising housing prices to plummeting, 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, In 1971, President Nixon imposed national price controls and took the United States off the gold standard, an extreme measure intended to end an ongoing currency war that had destroyed faith in the, Choose Expedited Shipping at checkout for delivery by, Learn how to enable JavaScript on your browser, U.S. An unprecedented redistribution of jobs, population, and wealth is under way in America, and it is likely to accelerate in the years to come. Hardcover - January 1, 2012. While innovation will never be responsible for the majority of jobs in the United States, it has a disproportionate effect on the economy of American communities. Bloomberg Businessweek, "Moretti has written the most important book of the year, I can't recommend it enough. Although jobs in local services constitute the vast majority of jobs, they are the effect, not the cause, of economic growth. If you take a walk in one of Americas cities, most of the people you see on the street will be store clerks and hairstylists, lawyers and waiters, not innovators. In the middle are a number of cities that could go either way. Today this is where the real money is. On top of this, income inequality is widening. The economic boom in Texas, the second most populous state in the US, is remarkable and often under-appreciated. Youll need solid, hard-core information to do it. And for that, The New Geography of Jobs is hard to resist. Not only are the two communities different, but they are growing more and more different every year. on the Internet. Twenty-four hours a day, seven days a week, 365 days a year, these containers are loaded onto enormous cargo ships bound for the West Coast of the United States. Moretti's findings are both significant and provocative. Institute for Research on Labor and Employment The New Geography of Jobs, by Enrico Moretti of U.C. Cities have become great filters, he explains, concentrating skilled workers in a handful of highly productive locations. The focus on short-term events often results in information that is incomplete, irrelevant, or both. And they apply to employment. 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