Wednesday, May 8, 2013

The New Geography of Jobs

I just started The New Geography of Jobs and this is a must read for ASET book club. The beginning evokes Ed Glaeser's The Triumph of the City, our April book club selection, the conclusion directly references Goldin and Katz's The Race Between Education and Technology (our less than successful February book club selection) and in between, Paul Krugman is cited - and I bet everyone in our ASET book club would be surprised to find themselves agreeing with Krugman!

The entire book also calls to mind Charles Murray and Coming Apart, a 2012 book club selection.

This crisply written, 250 page non technical book looks at innovation, the tradeable and non tradeable sectors of the economy, immigration and education.

If not an ASET book club section, I would place this on anyone's summer reading list.

http://www.amazon.com/New-Geography-Jobs-Enrico-Moretti/dp/0544028058/ref=sr_1_1?s=books&ie=UTF8&qid=1367762771&sr=1-1&keywords=the+new+geography+of+jobs

About the Author

Enrico Moretti is a professor of economics at the University of California, Berkeley, whose research has been supported by the National Science Foundation, 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

“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

“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

“Enrico Moretti’s, The New Geography of Jobs has been exceptionally well received by many of the economic development literati. Some commentators have described New Geography as the best economic development book of 2012. And if you don’t read New Geography, you would also miss reading the best, most readable explanation and defense of innovation, knowledge-based economics and their effects on the location of jobs in the United States. There is a lot going on in New Geography.” —Journal of Applied Research in Economic Development

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