The New York Times has a recent article up talking about the disappearing “urban advantage” for low-skilled workers. It is based on the work of MIT economist David Autor.
Here is a chart from the article plotting wages against population density from 1950 to 2015:
The clear takeaway is that dense urban centers remain a place where wealth is created – but you probably need a college degree.
The economic advantages of dense cities for those without one appears to be disappearing. The labor market has diverged.
Interestingly enough, David’s research also suggests that college graduates may be starting to abstain from the suburbs – even when they have kids.
And that’s because the returns to being in the city are so great.
For the full NY Times article, click here.
Air Canada bumped me from my flight this morning and so I am spending the day hanging out at Toronto Pearson Airport. I can think of more enjoyable ways to spend Canada Day, but at least there’s a nice seating area in Terminal 1 with free wifi and lots of plugs.
I just finished watching the below talk by Harvard economist Ed Glaeser at the Manhattan Institute. His overall thesis is that unemployment is a far worse problem than income stagnation and that the US needs to stop creating incentives for people not to work. He refers to it as a war on work.
He addresses a few topics that we’ve talked about here on this blog, such as guaranteed basic incomes, as well as others that we haven’t talked about, such as raising the minimum wage. To give you one spoiler: He argues that a higher minimum wage has been shown to cause an overall drop in employment, which he, again, believes is a deeper problem.
Glaeser delivers a passionate performance. So if you have 30 minutes to spare – perhaps you’re stuck in an airport somewhere – I recommend you give it a watch. If you can’t see the video below, click here.
[youtube https://www.youtube.com/watch?v=8xaNV_6wgak?rel=0&w=560&h=315]
The New York Times has a recent article up talking about the disappearing “urban advantage” for low-skilled workers. It is based on the work of MIT economist David Autor.
Here is a chart from the article plotting wages against population density from 1950 to 2015:
The clear takeaway is that dense urban centers remain a place where wealth is created – but you probably need a college degree.
The economic advantages of dense cities for those without one appears to be disappearing. The labor market has diverged.
Interestingly enough, David’s research also suggests that college graduates may be starting to abstain from the suburbs – even when they have kids.
And that’s because the returns to being in the city are so great.
For the full NY Times article, click here.
Air Canada bumped me from my flight this morning and so I am spending the day hanging out at Toronto Pearson Airport. I can think of more enjoyable ways to spend Canada Day, but at least there’s a nice seating area in Terminal 1 with free wifi and lots of plugs.
I just finished watching the below talk by Harvard economist Ed Glaeser at the Manhattan Institute. His overall thesis is that unemployment is a far worse problem than income stagnation and that the US needs to stop creating incentives for people not to work. He refers to it as a war on work.
He addresses a few topics that we’ve talked about here on this blog, such as guaranteed basic incomes, as well as others that we haven’t talked about, such as raising the minimum wage. To give you one spoiler: He argues that a higher minimum wage has been shown to cause an overall drop in employment, which he, again, believes is a deeper problem.
Glaeser delivers a passionate performance. So if you have 30 minutes to spare – perhaps you’re stuck in an airport somewhere – I recommend you give it a watch. If you can’t see the video below, click here.
[youtube https://www.youtube.com/watch?v=8xaNV_6wgak?rel=0&w=560&h=315]
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