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Did the Computer Revolution shift the fortunes of U.S. cities? Technology shocks and the geography of new jobs

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  • Berger, Thor
  • Frey, Carl Benedikt

Abstract

This paper shows how the Computer Revolution of the 1980s shifted the economic trajectories of U.S. cities. Examining the emergence of new occupational titles in official census classifications, we document a sharp reversal in the skill content of new jobs. While technological change was biased towards routine skills throughout the 1970s, new job titles mainly appeared in occupations and industries that required abstract skills after 1980. This reversal is also reflected in the geography of new jobs. Following the Computer Revolution, the creation of new jobs shifted towards cities with endowments of analytical and interactive skills. Our results suggest that the recent divergence of U.S. cities can in part be explained by the complementarities between new technologies and skill endowments.

Suggested Citation

  • Berger, Thor & Frey, Carl Benedikt, 2016. "Did the Computer Revolution shift the fortunes of U.S. cities? Technology shocks and the geography of new jobs," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 38-45.
    • Handle: RePEc:eee:regeco:v:57:y:2016:i:c:p:38-45
    DOI: 10.1016/j.regsciurbeco.2015.11.003
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    8. Méndez Ortega, Carles, & Teruel, Mercedes, 2018. "To acquire or not to acquire: Mergers and Acquisitions in the Software Industry," Working Papers 2072/307043, Universitat Rovira i Virgili, Department of Economics.
    9. Nickel, Christiane & Bobeica, Elena & Koester, Gerrit & Lis, Eliza & Porqueddu, Mario, 2019. "Understanding low wage growth in the euro area and European countries," Occasional Paper Series 232, European Central Bank.
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    17. Thonipara, Anita & Sternberg, Rolf G. & Proeger, Till & Haefner, Lukas, 2020. "Assessing the Digital Divide and its Regional Determinants: Evidence from a Web-Scraping Analysis," ifh Working Papers 25/2020, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), revised 2020.
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    19. Jasmine Mondolo, 2022. "The composite link between technological change and employment: A survey of the literature," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1027-1068, September.
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    More about this item

    Keywords

    New jobs; Technological change; Urban development;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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