in the 1980s there was a great Divergence between American cities the
cities with greater educated classes attract jobs with greater the
greater education

workers with jobs in the cities at the top of the list are making two
to three times more than identical workers in the cities at the bottom
of the list

a typical 40-year-old male worker with high school education is making
8% less than hourly his father did in 1980s

only one American worker has touched the final product the iPhone: the
UPS delivery guy


2/3 of all the US jobs are in local service economy.

attracting one high-tech job to a city, ultimately create five non
Hi-Tech jobs in the city

- 2 professional,
- 3 non-professional

the productivity of American industrial worker Rose two times from
1946 to 1975

US manufacturing jobs number reached to speak in 1978

there are only half as many manufacturing jobs in the US now as it was
in a speech one out of 10 workers it works in manufacturing and the
the ratio keeps declining

for each manufacturing job lost 2.6 jobs in outside of manufacturing
are eventually lost

Faced with Chinese competition US companies are forced to innovate and
invest in increased productivity

low income consumers tend to spend a larger proportion of their income
on imported goods from China. high income consumers tend to buy more
local services

US manufacturing is the size of Chinese and it is larger than the
whole economy of Great Britain

Innovation sector is about 10% of all the jobs


manufacturing jobs at its speak was 30% of all the jobs

Non-tradable jobs: locally produced and consumed. 2/3ds of all jobs

overseas workers maybe complements or substitutes for local workers

for every job outsourced by an American multinational, two jobs are created locally

workers capture 20 to 30% of extra
value coming from innovation

Non-tech workers capture
higher wages because of complementarity, better technology, positive externality.

for educated Americans the market is national wide

academic Stars attract the creation of Technology clusters

investment in the college degree has a 15% inflation adjusted annual
return