ECON 1 Lecture 17: Lecture 17
#17 Thursday 3/22 (The New Geography of Jobs)
Economic Change
● Cyclical: Short run (1-3 years)
● Secular: Long run (10-20 years)
The Economic Map is Changing
The most important predictor of a city economic growth:
● 1945-1980: Physical Capital
● 1980-2012: Human Capital (average education of workforce or share of workers with college degree)
Share of Workers with College Degree, by Metropolitan Area
Patents per Worker, by Metropolitan Area
Patents is a proxy for innovation
The Three Americas
1. At one extreme are the brain hubs — cities with a well-educated labor force and a strong innovation
sector
2. At the other extreme are cities with an unskilled labor force and employers in traditional industries
3. In the middle are a number of cities that could go either way
The three Americas are growing apart at an accelerating rate.
Metropolitan Areas with the Largest Share of College Educated Workers
Document Summary
#17 thursday 3/22 (the new geography of jobs) The most important predictor of a city economic growth: 1980-2012: human capital (average education of workforce or share of workers with college degree) Share of workers with college degree, by metropolitan area. The three americas: at one extreme are the brain hubs cities with a well-educated labor force and a strong innovation, at the other extreme are cities with an unskilled labor force and employers in traditional industries. In the middle are a number of cities that could go either way sector. The three americas are growing apart at an accelerating rate. Metropolitan areas with the largest share of college educated workers. Metropolitan areas with the smallest share of college educated workers. Boston and san jose have five times the number of college graduates per capita as merced or flint. Larger than the difference in schooling between the united states and peru or south africa.
