by Enrico Moretti · 21 May 2012 · 403pp · 87,035 words
Mobility and Cost of Living 6. Poverty Traps and Sexy Cities 7. The New “Human Capital Century” Acknowledgments Notes References Index Footnotes Copyright © 2012 by Enrico Moretti All rights reserved For information about permission to reproduce selections from this book, write to Permissions, Houghton Mifflin Harcourt Publishing Company, 215 Park Avenue South
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, New York, New York 10003. www.hmhbooks.com Library of Congress Cataloging-in-Publication Data Moretti, Enrico. The new geography of jobs / Enrico Moretti. p. cm. Includes bibliographical references and index. ISBN 978-0-547-75011-8 1. Labor market—United States. 2. Economic development—United States. 3. Equality
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Research, June 2010. Calvey, Mark. “Bay Area Startups Court Cash-strapped, Creditworthy.” San Francisco Business Times, February 10, 2012. Card, David, Kevin F. Hallock, and Enrico Moretti. “The Geography of Giving: The Effect of Corporate Headquarters on Local Charities.” Journal of Public Economics 94, no. 3–4 (2010): 222–34. Card, David
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, and Enrico Moretti. “Does Voting Technology Affect Election Outcomes? Touch-screen Voting and the 2004 Presidential Elections.” Review of Economics and Statistics 89, no. 4 (November 2007): 660
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: Changes in the Locational Choice of the College-Educated, 1940–1990.” Quarterly Journal of Economics 115, no. 4 (November 2000): 1287–1315. Currie, Janet, and Enrico Moretti. “Mother’s Education and the Intergenerational Transmission of Human Capital: Evidence from College Openings.” Quarterly Journal of Economics 118, no. 4 (2003): 1495–1532. Delo
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–78. Goldin, Claudia, and Lawrence F. Katz. The Race Between Education and Technology. Cambridge, Mass.: Belknap/Harvard University Press, 2008. Greenstone, Michael, Rick Hornbeck, and Enrico Moretti. “Identifying Agglomeration Spillovers: Evidence from Winners and Losers of Large Plant Openings.” Journal of Political Economy 118, no. 3 (2010): 536–98. Greenstone, Michael, and
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. “Where Is the Best Place to Invest $102,000—In Stocks, Bonds, or a College Degree?” Hamilton Project, Brookings Institution, June 2011. Greenstone, Michael, and Enrico Moretti. “Bidding for Industrial Plants: Does Winning a ‘Million Dollar Plant’ Increase Welfare?” NBER Working Paper 9844. National Bureau of Economic Research, July 2003. Gregg, Paul
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Growth of Industry Clusters: The Making of Silicon Valley and Detroit.” Journal of Urban Economics 61, no. 1 (January 2010): 15–32. Kline, Patrick, and Enrico Moretti. “Local Economic Development, Agglomeration Economies and the Big Push: 100 Years of Evidence from the Tennessee Valley Authority.” November 2011. Kraemer, Kenneth L., Greg Linden
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2, 2011. Lin, Jeffrey. “Technological Adaptation, Cities, and New Work.” Review of Economics and Statistics 93, no. 2 (May 2011): 554–74. Lochner, Lance, and Enrico Moretti. “The Effect of Education on Crime: Evidence from Prison Inmates, Arrests and Self-Reports.” American Economic Review 94, no. 1 (2004): 155–89. Lohr, Steve
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.2011.01048.x. Mallaby, Sebastian. More Money Than God: Hedge Funds and the Making of a New Elite. New York: Penguin, 2010. Manacorda, Marco, and Enrico Moretti. “Why Do Most Italian Youths Live with Their Parents? Intergenerational Transfers and Household Structure.” Journal of the European Economic Association 4, no. 4 (June 2006
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Campbell, and Sabina Deitrick. The Rise of the Gun Belt: The Military Remapping of Industrial America. New York: Oxford University Press, 1991. Mas, Alexandre, and Enrico Moretti. “Peers at Work.” American Economic Review 99, no. 1 (2009): 112–42. ———. “Racial Bias in the 2008 Presidential Election.” American Economic Review 99, no. 2
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, 2011. Mayer, Heike. “Bootstrapping High-Tech: Evidence from Three Emerging High Technology Metropolitan Areas.” Metropolitan Economy Initiative no. 10. Brookings Institution, June 2009. Milligan, Kevin, Enrico Moretti, and Philip Oreopoulos. “Does Education Improve Citizenship? Evidence from the U.S. and the U.K.” Journal of Public Economics 88, no. 9–10 (2004
by Abhijit V. Banerjee and Esther Duflo · 12 Nov 2019 · 470pp · 148,730 words
has remained such a small program. Economists have also traditionally been unwilling to embrace place-based policies (“help people, not places” as the slogan goes). Enrico Moretti, one of the few economists who has actually studied such policies, actively dislikes them. For him, channeling public funds into regions doing poorly is throwing
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at the same time. There is clear evidence, however, that cities as a whole can benefit from a large investment. Michael Greenstone, Rick Hornbeck, and Enrico Moretti (who is the author of The New Geography of Jobs,39 which argues that spillovers are the reason why cities are growing and rural areas
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the twentieth century, was skeptical. She wrote a piece about it in 1984, called, quite simply, “Why TVA Failed.”42 But it did not fail. Enrico Moretti and a colleague compared the TVA region with six other areas initially supposed to receive the same type of investment but where, for various political
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. 72 Peter Ganong and Daniel Shoag, “Why Has Regional Income Convergence in the U.S. Declined?,” Journal of Urban Economics 102 (2017): 76–90. 73 Enrico Moretti, The New Geography of Jobs (Boston: Houghton Mifflin Harcourt, 2012). 74 Ganong and Shoag, “Why Has Regional Income Convergence in the U.S. Declined?” 75
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I. Simon, “Medicaid Expansion and State Trends in Supplemental Security Income Program Participation,” Health Affairs 36, no. 8 (2017): 1485–88. 56 See, for example, Enrico Moretti and Pat Kline, “People, Places and Public Policy: Some Simple Welfare Economics of Local Economic Development Programs,” Annual Review of Economics 6 (2014): 629–62
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Factory in Wisconsin,” Washington Post, September 18, 2017; Natalie Kitroeff, “Foxconn Affirms Wisconsin Factory Plan, Citing Trump Chat,” New York Times, February 1, 2019. 35 Enrico Moretti, “Are Cities the New Growth Escalator?” in The Urban Imperative: Towards Competitive Cities, ed. Abha Joshi-Ghani and Edward Glaeser (New Delhi: Oxford University Press
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,” Quarterly Journal of Economics 108, no. 3 (1993): 577–98, https://doi.org/10.2307/2118401. 39 Enrico Moretti. The New Geography of Jobs. (Boston: Mariner Books, 2012). 40 Michael Greenstone, Richard Hornbeck, and Enrico Moretti, “Identifying Agglomeration Spillovers: Evidence from Winners and Losers of Large Plant Openings,” Journal of Political Economy 118, no
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(but then Boston did not win). 42 Jane Jacobs, “Why TVA Failed,” New York Review of Books, May 10, 1984. 43 43.Patrick Kline and Enrico Moretti, “Local Economic Development, Agglomeration Economies, and the Big Push: 100 Years of Evidence from the Tennessee Valley Authority,” Quarterly Journal of Economics 129, no. 1
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and so on. It is evident the additional rounds of growth are small to start with and get smaller pretty fast. 45 Patrick Kline and Enrico Moretti, “Local Economic Development, Agglomeration Economies and the Big Push: 100 Years of Evidence from the Tennessee Valley Authority,” Quarterly Journal of Economics 129, no. 1
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(2014): 275–331, https://doi.org/10.1093/qje/qjt034. 46 Enrico Moretti, “Are Cities the New Growth Escalator?,” in The Urban Imperative: Towards Competitive Cities, ed. Edward Glaeser and Abha Joshi-Ghani (New Delhi: Oxford University Press
by George R. Tyler · 15 Jul 2013 · 772pp · 203,182 words
that dramatically enhances revenues. But what happens to shareholders, particularly those who have adopted the Wall Street mantra of “buy and hold?” Economists Ulrike Malmendier, Enrico Moretti, and Florian Peters of the University of California, Berkeley, examined all contested US mergers between 1985 and 2009 where at least two suitors vied. Published
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modulated by the expansion of good jobs in services. A number of these jobs pay better than factory work and are in what economists like Enrico Moretti at the University of California, Berkeley refer to as the innovation industry. These are service firms designing or managing software, medical R&D, telecom applications
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: The Effects of CEO Stock Options on Company Risk Taking and Performance,” Academy of Management Journal vol. 50, no. 5, 1055–1076. 72 Ulrike Malmendier, Enrico Moretti, and Florian S. Peters, “Winning by Losing: Evidence on the Long-Run Effects of Mergers,” working paper 18024, National Bureau of Economic Research, April 2012
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Hurdle Rates,” Sloan Management Review, Fall 1995. 26 Thomas Schulz, “How the German Economy Became a Model,” Der Spiegel, March 21, 2012. 27 Ulrike Malmendier, Enrico Moretti, and Florian S. Peters, “Winning By Losing: Evidence on the Long-Run Effects of Mergers,” working paper 18024, National Bureau of Economic Research, April 2012
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,” Sydney Morning Herald, Oct. 8, 2012. Madeleine Heffernan, “Cochlear Cops First ‘Strike’ of the Season,” Sydney Morning Herald, Oct. 16, 2012. 99 See Ulrike Malmendier, Enrico Moretti, and Florian S. Peters, “Winning by Losing: Evidence on the Long-Run Effects of Mergers,” working paper 18024, National Bureau of Economic Research, April 2012
by Bruce Katz and Jennifer Bradley · 10 Jun 2013
additional jobs than those that serve purely local markets. Jobs in the high-tech sector have an especially strong multiplier effect. As the urban economist Enrico Moretti has found, each new high-tech job in a metropolitan area leads to, over the long term, two additional professional and three additional nonprofessional jobs
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and the mayor’s office were clear that Applied Sciences NYC would be connected to the particular existing and emerging strengths of the city. As Enrico Moretti points out in The New Geography of Jobs, “Universities are most effective at shaping a local economy when they are part of a larger ecosystem
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countries and looking over longer periods of time.”49 The counterproposition, that a more skilled workforce accelerates economic growth, is found in (among other works) Enrico Moretti’s book The New Geography of Jobs, which came out in 2012. Moretti argues that metropolitan areas with a high percentage of well-educated workers
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04-03 (Toronto, Ont.: Rotman School of Management, University of Toronto, 2004), p. 1. 19. Muro and Katz, “The New ‘Cluster Moment,’” p. 5. 20. Enrico Moretti, The New Geography of Jobs (Boston, Mass.: Houghton Mifflin Harcourt, 2012), p. 197. See also Margaret Pugh O’Mara, Cities of Knowledge: Cold War Science
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, 2012), p. 2. 25. Audrey Singer, Robert Suro, and Jill H. Wilson, “Immigration and Poverty in America’s Suburbs” (Brookings, 2011), p. 1. 26. See Enrico Moretti, The New Geography of Jobs (Boston: Houghton Mifflin Harcourt, 2012). See also Jonathan Rothwell, “Education, Job Openings, and Unemployment in Metropolitan America” (Brookings, 2012). 27
by Carl Benedikt Frey · 17 Jun 2019 · 626pp · 167,836 words
that have become so valuable in the higher-tech economy. And indeed, that is what has happened. In The New Geography of Jobs, the economist Enrico Moretti tells an intriguing story of two places in California: Menlo Park and Visalia. The story begins in 1969, with a young engineer turning down a
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10). One reason might be financial. Even if skilled cities provide better employment opportunities, moving is an investment that requires liquidity up front. Thus, as Enrico Moretti has convincingly argued, there is a case for subsidizing relocation.49 Mobility vouchers could pay for themselves by shifting the unemployed into paid employment elsewhere
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of Nations: Preparing Ourselves for Twenty-First Century Capitalism (New York: Knopf). 22. E. L. Glaeser, 2013, review of The New Geography of Jobs, by Enrico Moretti, Journal of Economic Literature 51 (3): 827. 23. H. Moravec, 1988, Mind Children: The Future of Robot and Human Intelligence (Cambridge, MA: Harvard University Press
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in the United States,” Journal of Economic Literature 47 (4): 983–1028. 29. E. L. Glaeser, 2013, review of The New Geography of Jobs, by Enrico Moretti, Journal of Economic Literature 51 (3): 832. 30. E. Moretti, 2012, The New Geography of Jobs (Boston: Houghton Mifflin Harcourt), 1–2. 31. Ibid., 3
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. L. 1998. “Are Cities Dying?” Journal of Economic Perspectives 12 (2): 139–60. Glaeser, E. L. 2013. Review of The New Geography of Jobs, by Enrico Moretti. Journal of Economic Literature 51 (3): 825–37. Glaeser, E. L. 2017. “Reforming Land Use Regulations.” Report in the Series on Market and Government Failures
by Brink Lindsey · 12 Oct 2017 · 288pp · 64,771 words
levels in American cities have diverged over time. The smart cities get smarter while other cities fall farther and farther behind. To illustrate this phenomenon, Enrico Moretti of the University of California, Berkeley, cites the examples of Albuquerque, New Mexico, and Seattle, Washington. As it just so happens, the former metro area
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five make $71,483 a year on average, a whopping 137 percent more than their counterparts in the bottom five.17 According to calculations by Enrico Moretti, a percentage point increase in a city’s share of college-educated workers boosts the earning of college grads in that city by 0.4
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to human capital hubs, while less-educated workers, who would stand to gain the most by moving, are kept away by artificial housing scarcity.21 Enrico Moretti, working with Chiang-Tai Hsieh of the University of Chicago, has produced the best estimate thus far of the cumulative impact these local distortions have
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Reserve Bank of New York Staff Report no. 440, March 2010 (revised September 2011), http://www.newyorkfed.org/research/staff_reports/sr440.pdf. 9.See Enrico Moretti, The New Geography of Jobs (New York: Houghton Mifflin, 2012), p. 96. 10.See Robert J. Barro and Xavier Sala-i-Martin, “Convergence across States
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2010 (revised September 2011), http://www.newyorkfed.org/research/staff_reports/sr440.pdf. 17.See Moretti, The New Geography of Jobs, pp. 94–95. 18.Enrico Moretti, “Estimating the Social Return to Higher Education: Evidence from Longitudinal and Repeated Cross-Sectional Data,” Journal of Econometrics 121 (2004): 175–212. 19.Ryan Avent
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. 13071, April 2007, http://www.nber.org/papers/w13071.pdf. 21.See Ganong and Shoag, “Why Has Regional Convergence in the U.S. Declined?” 22.Enrico Moretti and Chiang-Tai Hsieh, “Why Do Cities Matter? Local Growth and Aggregate Growth,” National Bureau of Economic Research Working Paper no. 21154, May 2015, http
by Jonathan Haskel and Stian Westlake · 4 Apr 2022 · 338pp · 85,566 words
. Plenty of underpaid, indebted college graduates might find themselves described as liberal elites, while the left-behinds include comfortable retirees with homes and pensions. Economist Enrico Moretti called the geographical dimension of this divide the “great divergence,” presenting evidence on the differences between prosperous and left-behind US cities on everything from
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economic rise of certain cities in the past thirty years has been remarkable. During this “great divergence,” to borrow a phrase coined by the economist Enrico Moretti, the most dynamic places have pulled ahead of the least dynamic places in many ways, most notably in building a cluster of educated workers. We
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can have a world-leading university. One consequence of the growing divide between places is political dysfunction. In his book The New Geography of Jobs, Enrico Moretti reports disengagement with the political process, but shortly after his book’s publication, a wave of political entrepreneurs around the world provided disengaged voters with
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. https://doi.org/10.1162/qjec.2010.125.2.767. Howes, Anton. 2020. Arts and Minds. Princeton, NJ: Princeton University Press. Hsieh, Chang-Tai, and Enrico Moretti. 2019. “Housing Constraints and Spatial Misallocation.” American Economic Journal: Macroeconomics 11 (2): 1–39. https://doi.org/10.1257/MAC.20170388. Hsieh, Chang-Tai, and
by Hal Niedzviecki · 15 Mar 2015 · 343pp · 102,846 words
will own you. Or to put it another way: own the people who will shape the future, or they might end up owning you. Economist Enrico Moretti writes in his book The New Geography of Jobs: “Globalization and technological progress have turned many physical goods into cheap commodities but have raised the
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. . . can we really begin to build broader support for programs that lift people in need.”17 In his book, The New Geography of Jobs, economist Enrico Moretti states: “For the first time in recent American history, the average worker has not experienced an improvement in standard of living compared to the previous
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. We assert unequivocally that only change in the form of technological innovation can keep us happy, healthy and, most important, wealthy. Writes the sober economist Enrico Moretti: “Innovation is the engine that has enabled Western economies to grow at unprecedented speed ever since the onset of the industrial revolution. In essence, our
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be a bad phone tomorrow. This sounds inevitable and sensible—shouldn’t things change, advance, get better? But let’s put it another way; as Enrico Moretti writes in The New Geography of Jobs, “What is a good job today will inevitably become a bad job in the future.”29 For phones
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. “U.S. Patent Statistics Chart Calendar Years 1963 - 2014,” n.d., http://www.uspto.gov/web/offices/ac/ido/oeip/taf/us_stat.htm. 14. Enrico Moretti, The New Geography of Jobs (Boston: Houghton Mifflin Harcourt, 2012), 38. 15. Sarah McBride, “Startups Jostle for Funding, Attention at South by Southwest,” Reuters, March
by M. Nolan Gray · 20 Jun 2022 · 252pp · 66,183 words
, from Barcelona to Bangkok to Boston—exhibit a pattern of density peaking in a “central business district” and gradually declining outward. As the urban economist Enrico Moretti notes, all of this also shows up in income data: as city populations grow, incomes—a useful proxy for productivity—also grow. Average wages in
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in American mobility, we are all poorer. But how much poorer? By misallocating so much of the US labor market, economists Chang-Tai Hsieh and Enrico Moretti put the annual loss in wages associated with zoning at around $1.6 trillion each year.23 Hsieh and Moretti estimate that these policies reduced
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. 8. Recall from the appendix that land prices drive density in that high land prices incentivize the efficient use of land through increased density. 9. Enrico Moretti, The New Geography of Jobs (Boston: Mariner Books, 2013), 128. 10. While clusters may rebuild themselves in areas where housing is cheaper—be it tech
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rural, southern poverty for prosperous, northern industrial cities. 22. Not to mention cultural growth, which similarly benefits from agglomeration economies. 23. Chang-Tai Hsieh and Enrico Moretti, “Housing Constraints and Spatial Misallocation,” American Economic Journal: Macroeconomics 11, no. 2 (April 2019). 24. Gilles Duranton and Diego Puga, “Urban Growth and Its Aggregate
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by Edward Glaeser (Penguin Press, 2011). • For a more recent overview of the distressing economic implications of zoning, see The New Geography of Jobs by Enrico Moretti (Houghton Mifflin Harcourt, 2012). CHAPTER 5: APARTHEID BY ANOTHER NAME • For the best single book on how planners systematically segregated the United States by race
by Ian Goldin and Tom Lee-Devlin · 21 Jun 2023 · 248pp · 73,689 words
the fundamental importance of cities to the modern world. Ed Glaeser’s Triumph of the City, Richard Florida’s The Rise of the Creative Class, Enrico Moretti’s The New Geography of Jobs and many other excellent books over recent years have laid a trail before us, as have canonical works such
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-skill jobs – for example, doctors, lawyers, architects and chefs – the majority are low-skill roles like waiters, cleaners, childcare workers and construction labourers. The economist Enrico Moretti has studied these multipliers, and found that the creation of one new tradeable sector job in an area generates demand for 1.6 new jobs
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