The world is increasingly spiky. Inequality is growing and it is increasingly geographic in nature. We know that people tend to make more money in urban areas compared to rural areas – even when they possess the exact same level of education. The returns to being smart and educated are simply greater in cities.
But they also depend on the size of the city. Mark Muro and Jacob Whiton of Brookings recently published data looking at labor market performance – by metro size – from 2009-2015 (right after the financial crisis). What they found is that larger metropolitan areas simply performed better than smaller ones.
In summary:
City size matters because it’s a major influence on city prosperity and adaptability as well as local worker fortunes. Bigger cities are more productive. They are more innovative. They draw better-educated workers by offering higher wages.
The situation is even more pronounced across the pond. According to the New York Times (quote from Richard Florida), a third of Britain’s gross domestic product comes from London alone.
What is far less clear is what should be done to address the decline of some of the smaller cities in America – cities that are stagnating and feeling left behind. But perhaps the first step is acknowledging what has happened and what remains feasible in today’s global economy.
Here is another quote from the above NY Times article:
Mr. Trump’s promise to relieve the pain by reviving the coal and steel industries, by keeping immigrants out of the country and by raising barriers against manufactured imports is only a rhetorical balm to satisfy an angry base seeking to reclaim a prosperous past that is no longer available.
That rhetorical balm.
Richard Florida and Joshua Gans just published an article in Politico called: Trump Is Making Canada Great Again. The overarching argument is that as the US closes its borders, Canada benefits. The best and brightest from around the world are coming here.
This fall, international student applications at the University of Toronto were up 70% compared to last year. And numerous companies in Toronto are reporting “steady, double-digit increases” in the number of job applications from Americans.
This is exactly what I was getting at when I made the pithy prediction that Amazon is going to choose Toronto for HQ2. It’s about access to human capital (though I acknowledge the political reality of selecting a city outside of the US).
Perhaps here or here might work for a location.
Here is an excerpt from the Politico article that starts to speak to the importance of foreign-born workers in the US:
As of 2013, foreign-born workers in STEM fields—science, technology engineering and math—accounted for nearly a fifth of workers with bachelor’s degrees in the United States, 40 percent of those with master’s degrees and more than half of those with Ph.D.s. In the San Jose metro area, consisting largely of Silicon Valley, immigrants
The world is increasingly spiky. Inequality is growing and it is increasingly geographic in nature. We know that people tend to make more money in urban areas compared to rural areas – even when they possess the exact same level of education. The returns to being smart and educated are simply greater in cities.
But they also depend on the size of the city. Mark Muro and Jacob Whiton of Brookings recently published data looking at labor market performance – by metro size – from 2009-2015 (right after the financial crisis). What they found is that larger metropolitan areas simply performed better than smaller ones.
In summary:
City size matters because it’s a major influence on city prosperity and adaptability as well as local worker fortunes. Bigger cities are more productive. They are more innovative. They draw better-educated workers by offering higher wages.
The situation is even more pronounced across the pond. According to the New York Times (quote from Richard Florida), a third of Britain’s gross domestic product comes from London alone.
What is far less clear is what should be done to address the decline of some of the smaller cities in America – cities that are stagnating and feeling left behind. But perhaps the first step is acknowledging what has happened and what remains feasible in today’s global economy.
Here is another quote from the above NY Times article:
Mr. Trump’s promise to relieve the pain by reviving the coal and steel industries, by keeping immigrants out of the country and by raising barriers against manufactured imports is only a rhetorical balm to satisfy an angry base seeking to reclaim a prosperous past that is no longer available.
That rhetorical balm.
Richard Florida and Joshua Gans just published an article in Politico called: Trump Is Making Canada Great Again. The overarching argument is that as the US closes its borders, Canada benefits. The best and brightest from around the world are coming here.
This fall, international student applications at the University of Toronto were up 70% compared to last year. And numerous companies in Toronto are reporting “steady, double-digit increases” in the number of job applications from Americans.
This is exactly what I was getting at when I made the pithy prediction that Amazon is going to choose Toronto for HQ2. It’s about access to human capital (though I acknowledge the political reality of selecting a city outside of the US).
Perhaps here or here might work for a location.
Here is an excerpt from the Politico article that starts to speak to the importance of foreign-born workers in the US:
As of 2013, foreign-born workers in STEM fields—science, technology engineering and math—accounted for nearly a fifth of workers with bachelor’s degrees in the United States, 40 percent of those with master’s degrees and more than half of those with Ph.D.s. In the San Jose metro area, consisting largely of Silicon Valley, immigrants
Here is a chart showing the US and Canadian metros with the highest percentage of foreign-born residents:
And here is a chart showing which metro areas receive the most venture capital dollars (in millions of US dollars):
As to be expected, Toronto, Vancouver and Miami lead in terms of the percentage of foreign-born residents. Though, I would bet that Toronto’s foreign-born population is far more diverse than those of Vancouver and Miami.
However, when you look at venture capital dollars invested, Toronto is nowhere near the top. Vancouver isn’t even on the list. And I suspect that some of you are surprised to see Miami sitting in between Chicago and Seattle (arguably a city that overperforms in tech relative to VC dollars invested). I was.
Perhaps Trump will help with this by making Canada great again.
With Mirik Milan (Night Mayor of Amsterdam) speaking at the upcoming NXT City Symposium here in Toronto, I figured it was time to revisit the topic of night mayors. If you’re new to this topic and/or the blog, you can get yourself up to speed here (scroll down).
Firstly, this idea is clearly spreading and it just crossed the pond. Last month on August 24, 2017, New York City Council voted to create the “Office of Nightlife.” It’s a small start. The office will have an annual budget of $300,000. But that’s okay.
As far as I know, NYC is now the first major North American city with government humans focused on leveraging the benefits of the nightlife industry.
For the record, my post “Why Toronto needs a night mayor” was published in March 2016. It was obvious that the idea was already spreading throughout Europe and I was hoping that this city (Toronto) take notice and decide to lead within North America. New York City decided to do that instead.
Secondly, CityLab published an article today called how to be a good night mayor. It is about what NYC can learn from the European cities who are already experimenting with this kind of office. Perhaps my favorite is the recommendation to “reflect your own city’s DNA.”
Of course, having a night mayor is one thing. Making it highly effective is another. In that regard, it is still early days for North American night mayors, and night mayors in general. Who will truly lead?
Photo by Alina Grubnyak on Unsplash
Here is a chart showing the US and Canadian metros with the highest percentage of foreign-born residents:
And here is a chart showing which metro areas receive the most venture capital dollars (in millions of US dollars):
As to be expected, Toronto, Vancouver and Miami lead in terms of the percentage of foreign-born residents. Though, I would bet that Toronto’s foreign-born population is far more diverse than those of Vancouver and Miami.
However, when you look at venture capital dollars invested, Toronto is nowhere near the top. Vancouver isn’t even on the list. And I suspect that some of you are surprised to see Miami sitting in between Chicago and Seattle (arguably a city that overperforms in tech relative to VC dollars invested). I was.
Perhaps Trump will help with this by making Canada great again.
With Mirik Milan (Night Mayor of Amsterdam) speaking at the upcoming NXT City Symposium here in Toronto, I figured it was time to revisit the topic of night mayors. If you’re new to this topic and/or the blog, you can get yourself up to speed here (scroll down).
Firstly, this idea is clearly spreading and it just crossed the pond. Last month on August 24, 2017, New York City Council voted to create the “Office of Nightlife.” It’s a small start. The office will have an annual budget of $300,000. But that’s okay.
As far as I know, NYC is now the first major North American city with government humans focused on leveraging the benefits of the nightlife industry.
For the record, my post “Why Toronto needs a night mayor” was published in March 2016. It was obvious that the idea was already spreading throughout Europe and I was hoping that this city (Toronto) take notice and decide to lead within North America. New York City decided to do that instead.
Secondly, CityLab published an article today called how to be a good night mayor. It is about what NYC can learn from the European cities who are already experimenting with this kind of office. Perhaps my favorite is the recommendation to “reflect your own city’s DNA.”
Of course, having a night mayor is one thing. Making it highly effective is another. In that regard, it is still early days for North American night mayors, and night mayors in general. Who will truly lead?
Photo by Alina Grubnyak on Unsplash
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