Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
November 22, 2014

Education is Producing a Nationwide Gentrification Effect

Emily Badger: The disparity between college and high school graduates’ wages has “widened as our economy has shifted to bestow greater and greater rewards on the well-educated. By 2000, that number was about 57 percent. By 2011: 73 percent.”

“These figures, though, reflect only part of the inequality that has pushed the lives of college and high school graduates in America farther apart. As the returns to education have increased, according to Stanford economist Rebecca Diamond, the geographic segregation of the most educated workers has, too — and not by neighborhood, but by entire city.”

“Diamond describes this as a kind of nationwide gentrification effect.”

“The larger the share of a city’s workforce that’s made up of college graduates, the more expensive it is to live there.”

And “those cities with a higher share of college grads yield higher wages for them, too. Diamond found that a 1 percent increase in a city’s college employment ratio corresponded with a 0.3 percent increase in wages for college graduates:”

college wages Education is Producing a Nationwide Gentrification Effect

The bottom line: “The economic well-being gap — including access to places with a better quality of life — grew even wider.”

  • UnionLeague

    In that case the South will always be the the cheapest place to live.

    • tzalinsky

      Did you even read the article? What a stupid quip.

      • r. d.

        i read it and live in the south thanku

  • tzalinsky

    A Stanford economist “discovered” that it’s getting more expensive to live in big cities where all the work for educated people are. Brilliant.

  • embo66

    “The educated also self-sort, with productive people living in the suburbs and ‘those others’ living in the central city skyscrapers”

    Between 2000 and 2011 the number of people living below the federal poverty line in the suburbs grew by 64 percent, more than twice the rate in cities.

    http://www.cbsnews.com/news/poverty-in-the-suburbs-hidden-and-growing/

    Besides, where do you think all your “productive” suburbanites actually work? Most of them have to commute into the Big Bad City.

    • mreport

      I live in Plano, a bedroom community established
      to house the workers in the ‘TeleComm Corridor’
      just to the south, including Texas Instruments.
      Except for the artificial abnormalities of certain
      bureaucratic beehive communities, it has the highest
      income of an city in the country, and yes, the Feds
      ‘Section Eight’ scheme has introduced us to the
      Underclass. Perhaps ‘workers engaged in productive
      manufacturing work’ is a better description.

      • embo66

        Well, bully for you.
        But how awful that you must be “introduced” to poor people! The horror!!

        I am ecstatic that you are in Texas — and I am not.

        • mreport

          When the Underclass stop receiving their welfare checks,
          you may well wish you were living in Texas, if you are now
          living in any large city in a Blue state.

          • embo66

            What a hoot! Do you really talk like this in real life?!? Guess I better bone up on my self-defense skills, in case “the Underclass” decides to run amok a little early!
            LOL . . .
            Honey, go soak your head; you need it.

          • pugwis

            I live in Santa Cruz, California. This little 50,000 person town has the highest property crime rate in California. It is loaded with “poor people”. They commit the rapes, burglaries, shootings, and all the rest. They sleep on the streets, in doorways, and camp on the levee. “Self defense skills”? We finally bought a couple of guns following a string of drug busts and stabbings within a block of our house. Why is all this happening? Because the City Council pampers the bums and illegals. They attract the “underclass”. Surrounding cities don’t have this problem. They kick the bums out. They’ve already “run amok” down here.

          • hcat

            This isn’t section 8, sounds like. These are street people.

  • pugwis

    I’ve owned four companies and know many other business owners who hire for a variety of jobs. I go back a long way – to when most kids didn’t have college degrees. I find that the jobs that used to require a high school degree now require a college degree. The nature of the work hasn’t changed, just that there are so many college grads out there that you pick them for the same job a high school kid could do easily. The pay is the same. If college kids are taking jobs away from high school kids, they would be getting the higher pay that the high school kids used to get. If this is true, the graph is measuring the wrong thing. It is measuring the surplus of college grads.

  • Billy_Durant

    The biggest shift has not been towards the educated. It has been the shift from manufacturing jobs to service sector jobs for the less educated. That shift was accurately predicted decades ago. We also have used “social engineering” to push more and more births into the lower classes where education is less valued and not as accessible.

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