The New Geography of Jobs

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 discussion of how different cities and regions have made a changing economy work for them ​-- ​and how policymakers can learn from that to lift the circumstances of working Americans everywhere." ​-- ​Barack Obama

We'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 hubs ​-- ​cities like San Francisco, Boston, and Durham ​-- ​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 aren't necessarily who you'd expect.

Enrico Moretti's groundbreaking research shows that you don'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 split ​-- ​supporting growth in the hubs while arresting the decline elsewhere ​-- ​is the challenge of the century, and The New Geography of Jobs lights the way.

“"Moretti has written the most important book of the year, I can''t recommend it enough. 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. Brilliant." -- Forbes "Enrico Moretti''s superb book highlights why the study of economic geography is vital for understanding fundamental issues such as the root causes of rising income inequality, innovation, and job growth. For those who are curious about how the United States will continue to thrive in the global 21st century economy, I can think of no better book to read than The New Geography of Jobs ." --Matthew E. Kahn, author of Climatopolis "A fresh, provocative analysis of the debate on education and employment. . . A welcome contribution from a newcomer who provides both a different view and balance in addressing one of the country''s more profound problems." -- Kirkus Reviews "Wow. . . Without referring to Charles Murray, Moretti blows Coming Apart totally out of the water, replacing Murray''s moralistic sociology with solid economics." --Arnold Kling, EconLog "[A] persuasive look at why some U.S. cities have prospered in recent decades while others have declined." --James Pressley, Bloomberg - Businessweek " The New Geography of Jobs explains the major shifts taking place in the United States economy and reveals the surprising winners and losers--specifically, which jobs will drive economic growth and where they''ll be located. Which communities will transform themselves into dynamic innovation hubs in 2012 and beyond? It can be done.Get educated, get a map and get going!" --Troy Onink, Forbes "In a new book, The New Geography of Jobs , University of California at Berkeley economics professor Enrico Moretti argues that for each job in the software, technology and life-sciences industries, five new jobs are indirectly created in the local economy. The jobs range from yoga instructors to restaurant owners. Mr. Moretti calculated such a multiplier effect by examining U.S. Census Bureau data from eight million workers in 320 areas during the past 30 years. By comparison, he found that just 1.6 local jobs were created for every new job in the manufacturing industry during the same period. 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 "Decade after decade, smart and educated people flock away from Merced, Calif., Yuma, Ariz., Flint, Mich., and Vineland, N.J. In those places, less than 15 percent of the residents have college degrees. They flock to Washington, Boston, San Jose, Raleigh-Durham and San Francisco. In those places, nearly 50 percent of the residents have college degrees. As Enrico Moretti writes in The New Geography of Jobs , the magnet places have positive ecologies that multiply innovation, creativity and wealth. The abandoned places have negative ecologies and fall further behind. This sorting is self-reinforcing, and it seems to grow more unforgiving every year." --David Brooks, The New York Times "As Enrico Moretti documents in compelling detail in a recently released book, The New Geography of Jobs , even if we don''t assemble iPhones or sneakers in America, we supply their designs to those who do. And we do still make things--things like precision scientific instruments and jetliners. But the way we''re producing them has changed as well: Even in sectors that have expanded production over the last decade, there are fewer jobs to be had-- the so-called productivity paradox. The reason? Production is increasingly automated, requiring more computers and fewer human beings. All this adds up to an economy that generates just as much income, but with profits flowing into far fewer pockets than they did in the previous century. Moretti suggests that the prognosis for the average American worker need not be so gloomy if, as he predicts, America continues to thrive as a hub of knowledge generation and innovation. While the idea creators--those who design iPhones and develop new drugs--will continue to be the drivers of prosperity, more than a few crumbs may fall to the workers who support them. For example, Moretti estimates that Microsoft alone is responsible for adding 120,000 low-skill jobs to the Seattle area, where the company is based. This is because of the support workers required to style the hair, cut the grass, and yes, build the houses, of all those Microsoft engineers and computer scientists. And they earn more doing it--a barber in San Francisco earns about 40 percent more than his counterpart in Detroit or Riverside, Calif. So one way of boosting incomes of the bottom quintile would be to provide incentives for them to pick up and move from the rust belt to innovation hubs like Austin, San Francisco, and Boston." --Ray Fisman, Slate "In The New Geography of Jobs , Moretti explains how innovative industries bring ''good jobs'' and high salaries to the communities where they cluster, and their impact on the local economy is much deeper than their direct effect." --Joann Steinmetz, Buffalo Rising " The New Geography of Jobs , examines how and why hiring is stronger in some U.S. cities than in others." --PBS NewsHour "Whatever this month unemployment report turns out to be, it''s probably not gonna be great news for the Rust Belt. Best guesses are manufacturing jobs are still scarce. Meanwhile, new economy places like Silicon Valley continue to thrive. The difference? Location, location, location. So says economist Enrico Moretti in his latest book, The New Geography of Jobs ." --NPR MarketPlace ”

"Moretti has written the most important book of the year, I can't recommend it enough. 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. Brilliant."
--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. His book, The New Geography of Jobs, is well-written and filled with important facts and wise policy advice. It is an excellent addition to the literature on the economics of place. [...] Both local policymakers and national leaders interested in policies with a geographical edge would do well to read the book."
--Edward Glaeser, author of The Triumph of the City 　 "Decade after decade, smart and educated people flock away from Merced, Calif., Yuma, Ariz., Flint, Mich., and Vineland, N.J. In those places, less than 15 percent of the residents have college degrees. They flock to Washington, Boston, San Jose, Raleigh-Durham and San Francisco. In those places, nearly 50 percent of the residents have college degrees. As Enrico Moretti writes in　The New Geography of Jobs, the magnet places have positive ecologies that multiply innovation, creativity and wealth. The abandoned places have negative ecologies and fall further behind. This sorting is self-reinforcing, and it seems to grow more unforgiving every year."
--David Brooks,　The New York Times

"The New Geography of Jobs, examines how and why hiring is stronger in some U.S. cities than in others."
--PBS NewsHour 　 "[A] persuasive look at why some U.S. cities have prospered in recent decades while others have declined."
--Businessweek 　 "In a new book,　The New Geography of Jobs, University of California at Berkeley economics professor Enrico Moretti argues that for each job in the software, technology and life-sciences industries, five new jobs are indirectly created in the local economy. The jobs range from yoga instructors to restaurant owners. Mr. Moretti calculated such a multiplier effect by examining U.S. Census Bureau data from eight million workers in 320 areas during the past 30 years. 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."
--The Wall Street Journal 　 "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."
--The New Republic 　 "Compelling"
--Slate 　 "Whatever this month unemployment report turns out to be, it's probably not going to be great news for the Rust Belt. Best guesses are manufacturing jobs are still scarce. Meanwhile, new economy places like Silicon Valley continue to thrive. The difference? Location, location, location. So says economist Enrico Moretti in his latest book,　The New Geography of Jobs."
--NPR MarketPlace 　 "A bold vision."
--MIT Sloan Management Review 　 "It is a great and disturbing book about the sweeping changes that are going on in American communities."
--Reuters 　 "Moretti's book suggests that for each additional job in the average high-tech firm, five additional jobs are created outside that firm in the local community."
--NPR All T --

ENRICO MORETTI is a professor of economics at the University of California, Berkeley, whose research has been supported by the National Science Foundation and the National Institutes of Health, and has been featured in the New York Times, the Wall Street Journal, and Slate, among other publications.

"A persuasive look at why some U.S. cities have prospered in recent decades while others have declined."-- Bloomberg Businessweek We'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 hubs--cities like San Francisco, Boston, and Durham--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 aren't necessarily who you'd expect.Enrico Moretti's groundbreaking research shows that you don'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 split--supporting growth in the hubs while arresting the decline elsewhere--is the challenge of the century, and The New Geography of Jobs lights the way."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."--Jonathan Rothwell, The Brookings Institution[AU Photo] Enrico Moretti is Professor of Economics at the University of California, Berkeley, and the recipient of several international honors, including a Fulbright Fellowship and the IZA Young Labor Economist Award. His research is supported by the National Science Foundation, the National Institutes of Health and several private foundations and has been featured in the New York Times , Wall Street Journal , Forbes, CNN, PBS , and NPR , among others.

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