The New Geography Of Jobs - 1252 Words

Americans frequently discuss the difference of success for some places and the decline for other. One of the main reasons are the growing opportunities for the well-educated college population and the exclusion for the less skilled workforce. Another primary cause of the divergence of the economy in the United States is that cities until nowadays have a traditional economy and they did not shift to knowledge or human capital economy. However, on the opposite side, many cities took advantage of the human capital and invested their forces to be a high-tech market. The book, â€Å"The New Geography of Jobs† of Enrico Moretti is a perfect tool that explains the reasons why this might happen. The book focuses in to explain why the â€Å"Great Divergence†Ã¢â‚¬ ¦show more content†¦Another example that he used was the decline of Detroit which was the Silicon Valley of the 1950s and today is a city with a high rate of crime, poverty, and unemployment. Moretti states that the economic map follows the three America theory that divides the United States into three different classes. He uses this theory to explain why these disparities occur between regions and their divisional factors. On the one hand, high wages for a skilled and unskilled labor force, on other low levels and declining markets and between the two, undecided cities. In other words, innovative cities, traditional manufacturing regions and in between the towns that can go anyways. What we can observe is that places where highly specialized innovation is predominant, for example where the engineers and designers are, clusters generate for each job created an additional five jobs outside the high technology industry. We can attribute this reason to the dense cluster phenomenon which the multiplier effect of high-tech companies when they are located near each other. The result of creating additional local service jobs increase significantly because people with a high ave rage of wages tend to spend part of their salary on wealthy service. Moretti refers this type of employment as the non-traded sector, to exemplify, it is jobs that only be performed by the local workforce. On the opposite direction, the manufacturing industryShow MoreRelatedThe New Geography Of Jobs1882 Words   |  8 PagesThe New Geography of Jobs According to Enrico Moretti s ground breaking book, â€Å"The New Geography of Jobs,† manufacturing sector companies have been superseded in the knowledge economy by innovation sector companies. While they were once the holy grail of community planners, manufacturing sector companies are no longer the ideal economic model. One key premise of Moretti s book is that industry-focused brain hubs create thick labor markets with lots of specifically skilled workers. For exampleRead MoreDr. Steven M. 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