Cost of Housing Is Main Driver of Migration from Superstar Cities

(p. B1) Last month the Census Bureau confirmed a confounding dynamic taking hold across the American landscape: Superstar cities, the nation’s economic powerhouses, hotbeds of opportunity at the cutting edge of technological progress, are losing people to other parts of the country.

For the first time in at least a decade, 4,868 more people left King County, Wash. — Amazon’s home — than arrived from elsewhere in the country.

Santa Clara County, Calif., home to most of Silicon Valley, lost 24,645 people to domestic migration, its ninth consecutive annual loss.

The trend is becoming widespread. Eight of the 10 largest metropolitan areas in the country, including those around New York, San Francisco, Los Angeles and Miami, lost people to other places in 2018. That was up from seven in 2016, five in 2013 and four in 2010. Migration out of the New York area has gotten so intense that its total population shrank in 2018 for the second year in a row.

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(p. B5) Research by Peter Ganong from the University of Chicago and Daniel Shoag of Harvard suggests that housing costs are a principal driver of the change in migration decisions: As the highly educated have flocked to superstar cities, they have pushed housing prices way beyond the reach of people earning less. Continue reading “Cost of Housing Is Main Driver of Migration from Superstar Cities”

Apart from R&D, Scientists and Engineers May Improve Firm Processes

(p. B5) Companies with a higher proportion of scientists and engineers are more productive than their peers, even when those workers aren’t directly involved in the research-and-development tasks that drive the most obvious forms of innovation, a new paper from the National Bureau of Economic Research suggests.

. . .

Some 80% of industrial scientists and engineers work in roles outside of formal R&D, such as information technology and operations. Their knowledge and training is critical to firms’ ability to improve processes, fix broken systems and implement new technologies, says Richard Freeman, a Harvard University economist and co-author of the paper.

For the full story, see:

Lauren Weber. “Scientists Are Useful Beyond R&D Work.” The New York Times (Wednesday, June 28, 2017): B5.

(Note: ellipsis added.)

(Note: the online version of the story has the date June 27, 2017, and has the title “For a More Productive Workforce, Scientific Know-How Helps.”)

The published version of the Freeman co-authored paper mentioned above, is:

Barth, Erling, James C. Davis, Richard B. Freeman, and Andrew J. Wang. “The Effects of Scientists and Engineers on Productivity and Earnings at the Establishment Where They Work.” In U.S. Engineering in a Global Economy, edited by Richard B. Freeman and Hal Salzman. Chicago: University of Chicago Press, 2018, pp. 167 – 91.

Amazon Names “Openness to Creative Destruction” as “#1 New Release in Industrial Management & Leadership”

Art Diamond noticed on Fri., June 28, 2019 that Amazon.com had identified “Openness to Creative Destruction” as “#1 New Release in Industrial Management & Leadership”.