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, by Enrico Moretti
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Product details
File Size: 5538 KB
Print Length: 309 pages
Publisher: Mariner Books; Reprint edition (May 22, 2012)
Publication Date: May 22, 2012
Sold by: Amazon Digital Services LLC
Language: English
ASIN: B008035HQQ
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Amazon Best Sellers Rank:
#101,825 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
Very interesting and logical book. Everyone should read this (no...those coal jobs are not coming back, you cannot turn back time). People need to be realistic. Biggest lesson from the book........those who can adjust get by....those who cannot change with the times don't. One surprising thing in the book (at least to me) is that often "government intervention" doesn't help at all. Throwing money at cities to prop up some industries, etc. just doesn't work because sometimes you cannot predict what will be the next "big" thing, what will survive, what won't. Like so many other things, some things sound good on paper and for one reason or another just fail. Things, industries, etc. become obsolete over time and you have to be able to either retrain or adjust.
Thoughtful, smart, and important book. Interesting observations regarding job development as it relates to new industries and higher education among the workforce, which form brain hubs that define today’s economy.Only quibbles have to do with characterization of Berkeley and San Francisco. Being that I have lived in both cities for about a 15 year stretch, I know something about the history and culture of both. To begin with Berkeley is an island, one that neither follows or cares what others think. It is an impulsive and innovative community that would place economic considerations way behind a number of other socially motivated priorities—this is not to assume that it any way correctly measures such priorities at all.Now San Francisco is another case. East San Francisco is mentioned as a part of the city slated for light manufacturing in vain hopes that industry will come back. I’m sure the author is aware that that district has been “slated†for industrial business for a long, long time due to its proximity to the docks and the type of business needs that took place in that district. Gone are breweries like Hamms and bakeries like Wonder Bread. Forgotten are two million service men and women of WWII who were siphoned through the Bay Area to serve overseas and the numerous laborers who built and repaired the machinery, planes, and countless other necessities of war.San Francisco resisted the youth of Hait Ashburry, the gay and lesbian revolution, and at times the Google high tech world that has found a home in this great city. The youth culture got old, and Castro and beyond found a home after arduous struggles and final acceptance. And the Mission District has strongly resisted being bought out, and I imagine still is resisting it.In all cases we are talking about culture and traditions versus money. It then comes down to a set of values, and good ones happen over a long stretch of time.The author’s notions on creative and vibrant environments as magnets or not for development of economic hubs is naive. Employing Jimi Hendrix/Seattle as an example how creative types won’t necessarily gravitate to a metropolis based upon a creative vibe is utter nonsense. Hendrix,though born in Seattle, lived mostly in Europe and New York when he wasn’t touring. His studio Electric Lady Studio is still located in Greenwich Village. So, what does he have to do with Seattle and a creative vibe? Very curious. Should stick with what you know.
The new Geography of Jobs details the changing nature of US employment as production technology has changed. I saw this book as a reference from another book on the implications and dynamics of the way in which supply chains have migrated from domestically to internationally based. It is excellent and remains extremely relevant and even predictive from being published in 2013.In the new geography of jobs, author Enrico Moretti discusses how the nature of US jobs and manufacturing has been changing for the last 30 years. The economy is becoming service based and offshoring of manufacturing is the norm as production migrates to where labor is cheaper. The author details how the size of the manufacturing labor force has been in almost monotonic decline and how even high technology content goods manufacturing quickly moves offshore despite the US housing the intellectual property. The author discusses how this is the natural consequence of the value chain that has been created where the service sector value add is what the US has come to dominate whereas the manufacturing value add is where low cost labor countries tend to have comparative advantage. The author then spends time on describing what high value service sector jobs entail, describing a job at Pixar for example. On the flipside of the decline in manufacturing is the growth in services and the author shows the growth in jobs associated with scientific R&D, software, pharmaceuticals and the internet- here the charts are the inverse and monotonically increasing. Unfortunately the magnitudes don't necessarily add up so therein lies part of the problem but the point is that the nature of where the US has a comparative advantage is changing and the areas of job growth vs decline are structural. The author spends a lot of time discussing how these sectors which are productive have huge spillovers to the surrounding areas and details the wages of base service jobs in areas of high vs low productivity and the ranges are enormous. The author spends a lot of time on how as the nature of jobs demanded is changing the geography of jobs is changing and gravitating towards the coasts where there are more tech related or finance related areas. The author discusses how the forces of agglomeration are strong as productivity feeds on itself as talented individuals come into close contact and as the geography of employment is changing as well as the education levels required to fill those labor gaps is changing the country is becoming polarized in opportunity set.The New Geography of Jobs discusses what labor transitions are occurring in the US right now and their effects on prices and opportunities. It gives good perspective on why the country is increasingly divided and see the world so different in opportunity set. The author discusses the economic consequences of the changes we are seeing and gives some policy advice on how to address them. One thing is hard to argue though which is that what value add the US can offer the global economy is fundamentally different to what it was 40 years ago and many of the changes which are creating conflict are structural. This is a must read to better understand the economic consequences of the changing nature of the US comparative advantage and what the country needs to consider when trying to address the negative consequences to certain subsets of the population who are most affected. The continued need of the US to focus on its human capital rather than its manufacturing capital though is almost a given.
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