Jobs 9
July 11, 2019
He happened to read a book that an American economic professor wrote. The title was shocking, "Your Salary Will Be Decided By Your Living Place". The author pointed out that there are a certain number of areas that have been growing. In these cities, there are a high concentration of innovative companies, and those cities pull their nations' resources. The average salary of these innovative companies' workers are higher than those in other cities, and so these employees tend to use more money, thus, other occupations' salaries would become higher, and as a total the cities' GDP would become higher.

The author mentions about the reasons for this concentration:

1. Innovations tend to be born from conversations. If in the city, many AI engineers lived, there are more possibilities for innovative things to be born. When innovative ideas are born, business related companies, like researching companies, makers, computer companies, investors, lawyers, etc., are close so, the innovation can be done easily. Because companies know these things, innovation related companies are willingly to move to these areas.

2. This type of thing can happen anywhere in the world. These things don't happen intentionally, but rather incidentally, like Bill Gates moving back to Seattle because it was his hometown. Afterwards, the city became the home of Microsoft and many other companies.

3. In these cities, university graduates' percentage is higher than other cities.

4. In these cities, as decision making is high, innovators wouldn't lose their momentum. As they are pioneers in certain fields, they effect each other positively. Furthermore, they affect even other occupation's workers, like waitresses and shop clerks.

5. Innovative companies represent IT related companies as well as life science related companies, among others. For these companies, many highly skilled workers gather from all over the world.

6. In these cities, the land prices go up. However, companies don't think to move to cheaper areas or cheaper countries, like factories' moving because innovation doesn't happen in other places, it's like culture.  They pay higher salaries.

This reminded him of Amazon's case. Recently Amazon is looking for their second headquarters for 50,000 workers, and wanted to make it in New York. But New York citizens were against it saying it would make the prices of things too high. Amazon gave up.

7. Innovative companies' workers are at most 10% of the workers in the city. In other words, more than two-thirds of the workers are non-innovation job workers, however non-innovative occupation workers don't have the power to liven up the city, they are only side role players.

8. Prosperity comes from innovation. If the products' innovation stops, the products will start to be made at a lower cost in other countries. This will lead to economic damage to the original company's country. But, at the same time, they can buy cheaper products. So it wouldn't be all bad for people's lives.

The author wrote a few other things:

・150 years ago, half of the laborers in the US were farmers, now only 1% are farmers.
・People affect each other. If you live in a place that unhealthy people live, you will be unhealthy. If you live in a healthier living place, you will be healthy.
・Higher educated couples tend to move to big cities seeking their jobs. Higher educated people tend not to feel difficulty to move from their cities, while lower educated people tend to stay in their home towns.
・Americans' rate of moving their living residences is rather higher than other countries' citizens. In other countries, people don't want to move so frequently.
・i-phones make money mainly because of the ideas and its design, as well as flash memory and semiconductor.

He had heard the idea that big cities have been becoming bigger from another news source, but hadn't figured out the reasons. He understood, but he felt bad. Do only big cities have advantages?

(To be continued ...)












*side role player :脇役
*semiconductor :半導体
inserted by FC2 system