New Geography of Jobs in America Enrico Moretti

Two Videos • Rough but a bit more in depth http: //bldsf. com/blog/2 016/5/3/enrico-moretti

• More Polished but less depth https: //www. frb sf. org/education /teacherresources/econ omics-inperson/jobshuman-capitalcollegeeducatedworkforce/

Three Americas 1. Brain Hubs 2. Factory Towns 3. Middle group

Gap • Huge and growing 1. Education 2. Wages 3. Longevity…

Current Predictive factors of Growth • Post WWII – Physical Capital and location near resources • Today – Human Capital -- Schooling

Why clustering in Brain Hubs 1. Knowledge Peers – critical mass – who is around you 2. Thickness of Labor Market – large and diverse • Larger & more diverse • Tighter match employer and employee • Thicker better match 3. Positive Feedback • Sustaining force • Path Dependency • Catch-up difficult for others

Key take aways Difference in college educated • 50% college grads seems like a tipping point Size of place not key Thickness of labor market is

How to catch up? • Unsure • Richard Florida’s “sexy cities”, artistic class, & amenities not the answer • Amenities follow growth not other way around • Research Universities play a role, but unclear • US awash with such schools • Necessary but not sufficient condition

Broader impacts in Hub region 1. Larger Multiplier of new economy jobs 2. Translates into higher wage multiplier 3. 1 Techie supports 4 to 5 secondary jobs at better pay