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The New Geography of Jobs by [Moretti, Enrico]
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4.4 out of 5 stars 116 customer reviews

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Editorial Reviews


“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.”

“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

“Professor Moretti is a visionary scholar and one of the most important new voices in economics.”
— The Costa Report

“The choice of where you live is the most important choice an American worker can make today.”
— MSNBC – The Dylan Ratigan Show

“The book is excellent, I strongly recommend it.”
Forbes (Adam Ozimek)

What explains the wide range of economic growth and prosperity across U.S. regions, and why is it so hard for struggling metro areas to reverse multi-decade trends? These are the questions that urban economist Enrico Moretti addresses in The New Geography of Jobs. In his vision, innovative workers and companies create prosperity that flows broadly, but these gains are mostly metropolitan in scale, meaning that geography substantially determines economic vitality. [...] 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.”
— Brookings Institution (Jonathan Rothwell)

“An important new book.”
The American

“A bold vision.”
— MIT Sloan Management Review

“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

“Economist Enrico Moretti finds that earnings of a high school graduate increase 7% for every 10% increase in the percent of people in a city that are college graduates. While having more high-skilled workers around tends to raise everyone's salaries, Moretti's research shows that low-skilled workers benefit four to five times more than college graduates. Even as liberals work to find a way to counteract the problem of the 1 percent, they should view HSI as a step toward turning America back into a true middle-class society.”
— The Atlantic

“Prof. Moretti's findings are both significant and provocative.”
— Institute for Research on Labor and Employment  

“[There is] a growing divide among American cities. The winnter are metro areas like Raleigh, N.C.,  San Francisco, and Stamford C.T. where more than 40 percent of the adult residents have college degrees. The Raleigh area has a booming technology sector and several major research universities; San Francisco has been a magnet for college graduates for decades; and metropolitan Stamford draws highly educated workers from white-collar professions in New York like finance.

Metro areas like Bakersfield, Calif., Lakeland, Fla., and Youngstown, Ohio, where less than a fifth of the adult residents have college degrees, are being left behind. The divide shows signs of widening as college graduates gravitate to places with many other college graduates and the atmosphere that creates. "This is one of the most important developments in the recent economic history of this country," said Enrico Moretti, an economist at the University of California, Berkeley, who recently published a book on the topic, The New Geography of Jobs.
The New York Times (Sabrina Tavernise)

The New Geography of Jobs, by Enrico Moretti of U.C. Berkeley, provides an excellent big-picture analysis of the increasingly divergent outlook for our nation’s cities and delves into the reasons why this disparity is likely to widen. […] Highly recommended, a compelling read!”
Talking about Finance (Eric Von Berg)

“This book convincingly argues that an unprecedented redistribution of jobs, population and wealth is underway in this country.”

“Remember author Thomas Friedman’s argument that the world was flat, and where you lived didn’t matter, because with e-mail, cell phones, and the Internet, you could do business all over the world? Berkeley economist Enrico Moretti pretty much says "that is so 10 years ago!" In fact, Moretti says the opposite has happened. There’s a sea change going on, a redistribution of population and wealth fueled by innovative companies that need to be in ecosystems to thrive.”
— NPR Here and Now

“Amid growing concern about its outsourcing practices, Apple has posted a study showing that it has created or supported more than 514,000 jobs in the United States. U.C. Berkeley economist Enrico Moretti has written a book about this kind of indirect job creation. He says Apple's total jobs creation estimate is too high — the real total is somewhere between 300,000 and 400,000. 'My research suggests that for each additional job in the average high-tech firm, five additional jobs are created outside that firm in the local community,' Moretti says. And when well-paid tech employees spend a lot of money, that also creates jobs. According to Moretti, 'That would suggest that at the local level, Apple generates about 300,000 jobs all together in the U.S.'”
— All Things Considered

“The dueling speeches on the economy by Obama and Romney simply offered national solutions. Yet so many cities and states are on a strong comeback. Each place has unique reasons for doing well, such as natural resources or creative universities. New York City thrives on finance, arts, tourism. Washington, D.C., prospers on tax and visitor dollars. Many places have largely defied the sluggishness in the national economy. These growth centers could become America’s pathway back to prosperity. They not only hold lessons for what other places can do, but they can serve as magnets for the unemployed.

More than ever, local communities are the secret of economic success" in a global economy, finds Enrico Moretti, an economics professor at the University of California Berkeley , and author of a new book, The New Geography of Jobs. Like many scholars now studying microeconomies, Dr. Moretti sees the mobility of workers to low-employment cities as an easy solution to improve the national economy. ‘Your salary depends more on where you live than your résumé,’ he writes.”

Christian Science Monitor

“Politicians from both parties, acutely aware that voters are giving a critical eye to the unemployment rate, continue to tout a rebirth in American manufacturing as the key to job growth. However, not everyone agrees that more manufacturing equals more jobs. In his book The New Geography of Jobs, University of California at Berkeley economics professor Enrico Moretti argues that, contrary to conventional wisdom, the information economy is a driver of job growth. The problem, according to Moretti, is that we often look at places like Palo Alto, Calif., with its office parks, Stanford University campus and ambitious entrepreneurs, and fail to recognize the ripples that tech companies send through the greater economy. Using reams of U.S. Census data, Moretti estimates that for every job created by the likes of Apple or Cisco Systems, another five jobs are added in the local service industry.”
TERRENCE MURRAY, The Financialist

The National Review

“Enrico Moretti's provocative new book on the geography of prosperity grapples with such issues and states that research universities increase both the supply and demand for college graduates, but he criticizes efforts to create universities where there is no pre-existing ecosystem of industrial activity and research. The implication is that if you are mayor of El Paso, Modesto, Las Vegas, or Buffalo, you might as well give up on purposeful efforts. Success, in large part, comes down to luck and history. If you are fortunate enough to be Seattle, two local boys grow up to become Bill Gates and Paul Allen and eventually decide to locate their company, Microsoft, there.”
The New Republic

The New Geography of Jobs by Enrico Moretti offers a readable and comprehensive view of the economic forces at work in the nation's metropolitan areas. Moretti, an economist at the University of California Berkeley, offers a comprehensive and non-technical discussion of the shift to a knowledge-based economy, the growing importance of human capital to individual and community economic success, and the critical role played by industry clustering in driving innovation and productivity. For Moretti, this shift to a knowledge economy means the economic prospects of cities are diverging: adaptable places with talent are becoming more prosperous, while those with less talent and locked in to traditional industries struggle.”
The Huffington Post

“If there's one current book I would recommend to leaders in American cities today, it’s Enrico Moretti’s The New Geography of Jobs.”
—Aaron M. Renn in Urbanophile

The New Geography of Jobs has affected the way I see the world.”
—Jim Russell

“Some economic texts get lost in the minutia. However, The New Geography of Jobs takes a step back to revel in the Big Picture where the real patterns of commerce can be explored.”
—Carrie B. Reyes

“This important book by a U. Cal Berkeley economics professor contains vital insights and data about the nature of jobs in our new economy.  The thesis he unveils is, at its core, extraordinarily encouraging because American innovators have so much untapped potential.  Moretti gets special points for observing that Friedman’s The World Is Flat thesis is simply wrong.  In Moretti’s opinion the data don’t support this view. And despite all the hype about the “death of distance” and the “flat world”, where you live matters more than ever.”
—Mark Mills, Forbes

“Just finished Cal economist Enrico Moretti’s excellent  The New Geography of Jobs. Moretti has a way of looking at things we all know in new and refreshing ways.”
—Mike Cassidy, Silicon Beat

“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

“In his book The New Geography of Jobs, Moretti unpacks the forces that are reshaping America. Whereas the 20th century was defined by physical capital producing physical goods, the 21st century is increasingly driven by human capital and its output of innovation and knowledge. Smart people tend to cluster into globally competitive “brain hubs”  that, in Moretti’s eyes, will form the basis for much of America’s future prosperity.”
Free Enterprise

“I highly recommend to everyone in business or wanting to be in business.”
—Kathleen Quinn Votaw

“It is a great and disturbing book about the sweeping changes that are going on in American communities.”

The New Geography of Jobs is arguably the most important book about urban economics published this year. Author Enrico Moretti, an Italian-born economics professor at Berkeley, analyzes the great divergence occurring between metropolitan regions in the United States. While much of his narrative about the innovation sector as the key driver in regional growth will be familiar to readers of Richard Florida, Moretti provides a valuable counter-balance to Florida’s theories about the creative class.”
—Bacon's Rebellion

“We are habituated to thinking about U.S. inequality across people: By education, race, and ethnicity. Moretti convincingly demonstrates that the inequalities that matter most in early 21st century America are the differences across places. An individual standard of living is increasingly determined by where she lives, not just what she does. Wages are higher, and unemployment lower, for workers living in an 'innovation cluster' than for comparably educated workers outside of these privileged places.”
—Inside Higher Ed

“If you’re thinking of a career change or new employment, or if job creation is your Number One priority this year, this is a book you’ll want first. You’ll need solid, hard-core information to do it. And for that, The New Geography of Jobs is hard to resist.”
—Independent News

“Moretti has done a good deed by sitting down to write. He's clear and concise. He has tackled these vexing questions from many angles - the decline in American manufacturing; the phenomenon of path dependency that he calls The Great Divergence; the reason why people choose to live where they live. He has writer's knack for pulling out the illustrative detail while never losing the broad sweep of events. It is truly a skill to be equally at home in the abstract realm of statistics and the very emotion-laden world of human decision-making. Most economists forget that the conclusions they draw from their sample populations also contain the drama of people's actual lives within them. Moretti remembers this while avoiding another trap of economists. He doesn't leave his story in the realm of the theoretical, but constantly brings his tale back to real-world existence in a way that amplifies the argument by making it coincide with everyday experience. Most importantly, he knows his subject well and he's talking about something that is shaping our future more than we realize.”
—Sam Seidel

Book Description

HMH Hardcover, 2012
Previous ISBN: 978-0-547-75011-8

Product Details

  • File Size: 4254 KB
  • Print Length: 306 pages
  • Page Numbers Source ISBN: 0544028058
  • Publisher: Mariner Books; Reprint edition (May 22, 2012)
  • Publication Date: May 22, 2012
  • Sold by: Houghton Mifflin Harcourt
  • Language: English
  • ASIN: B008035HQQ
  • Text-to-Speech: Enabled
  • X-Ray:
  • Word Wise: Enabled
  • Lending: Not Enabled
  • Enhanced Typesetting: Enabled
  • Amazon Best Sellers Rank: #219,086 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
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Customer Reviews

Top Customer Reviews

Format: Hardcover Vine Customer Review of Free Product ( What's this? )
Enrico Moretti uncovered that for each additional job in manufacturing 1.6 jobs are created in local jobs ranging from barbers, waiters, to doctors and lawyers. But, for the innovation sector, the job multiplier is 5. Moretti explores the implications of those job multipliers for the prospect of cities. By doing so, he dismantles Timothy Noah's The Great Divergence: America's Growing Inequality Crisis and What We Can Do about It

Moretti observes secular changes in the American workforce. 150 years ago, 50% of the labor force was engaged in agriculture vs less than 1% today. Yet, the agriculture output is far greater now. US manufacturing is undergoing the same process. US manufacturing output is as large as China's (pg. 36) and has doubled since 1970. Yet, the US manufacturing labor force is smaller than in 1970. Just as agriculture, manufacturing has become more productive and less labor intensive.

Job growth is in good part generated by the innovation sector (Internet, software, scientific R&D, pharmaceuticals). The innovation sector employs 10% of the labor force. But, it has a huge influence on overall job growth. When an extra scientist is hired in a city, over time it creates 5 additional local jobs outside the innovation sector; 2 of them are professional (doctors, lawyers, teachers) and 3 of them are low skilled (waiters, clerks). This is because innovation sector workers are highly paid and have discretionary income to spend on local services. It is also because such workers increase the capacity of the firms they join, and the latter have a demand for local services (graphic designers, advertisers).
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Format: Hardcover Vine Customer Review of Free Product ( What's this? )
The American economy has been transitioning from an industrial to a knowledge-based economy. While this country has stopped making several types of goods that have become commodities they're cheaper to manufacture in countries where unskilled laborers' wages are lower than those prevalent here, it has the current lead in the origination of patents and the production of goods and services for the knowledge- and idea-based industries such as entertainment, software, and pharmaceuticals.

As a result of this transitioning, job seekers who are better educated are expected to have more opportunities available to them than those who are less educated. According to the book's author, however, because those opportunities currently tend to be clustered in a limited number of cities only, America's transitioning from old (industrial) to new (knowledge-based) economy is dividing the country into three opportunity zones: the few cities that are at the forefront of the new economy are currently and likely to continue thriving for years to come, those that have been devastated by the old economy are in danger of becoming ghost towns if they're not able to reverse their fortunes, and those currently not on either end of the opportunity spectrum have to work harder to lift their economy to the next level up.

According to the author's as well as other economists' research, a new economy-type job usually pays better than a manufacturing job, and the creation of a new economy-type job tends to produce other jobs that are high-paying (e.g., doctors) as well as lower-paying (e.g., waiters/waitresses). Cities that can build on their comparative advantage in select business sectors to create new economy-type jobs can obtain good payoffs for their investments.
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Format: Hardcover Vine Customer Review of Free Product ( What's this? )
"The New Geography of Jobs" by Enrico Moretti offers an insightful perspective on the American economy. Presenting original research and analysis, Mr. Moretti explains why individual worker's fortunes have diverged somce the 1980s and recommends how we might lift up those who have been left behind. Mr. Moretti's timely and persuasive book is sure to appeal to economists, policy makers and general interest readers alike.

Mr. Moretti defines the 'innovation industries' as companies that depend on human ingenuity auch as software, pharmaceuticals and motion pictures. Although the end product may be costly to develop, once the first copy has been made it can be replicated inexpensively; thus generating enormous profits. In an argument not unlike the one found in Robert Reich's classic The Work of Nations, Mr. Moretti contends that the people and support infrastructures that surround innovation industries amount to a kind of 'non-tradable' industrial zone in the sense that these communities can not be easily moved or replicated elsewhere. Consequently, those metropolitan areas that can attract the kind of human capital capable of producing innovative and marketable ideas will prosper; while others that are dependent on more easily-replicable manufacturing industries will inevitably see their standards of living decline.

Throughout the book, Mr. Moretti does an excellent job of illustrating key concepts through case studies. For example, Mr.
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