| By: |
Martin, Roger (Martin Prosperity Institute & University of Toronto);
Florida, Richard (Martin Prosperity Institute & University of Toronto);
Pogue, Melissa (Martin Prosperity Institute & University of Toronto);
Mellander, Charlotta (Jönköping International Business School, & Centre of Excellence for Science and Innovation Studies) |
| Abstract: |
Purpose – The article marries Michael Porter’s industrial cluster theory of
traded and local clusters to Richard Florida’s occupational approach of
creative and routine workers to gain a better understanding of the process of
economic development. By combining these two approaches, four major
industrial-occupational categories are identified. The shares of U.S.
Employment in each – creative-in-traded, creative-in-local, routine-in-traded
and routine-in-local – are calculated and a correlation analysis is used to
examine the relationship of each to regional economic development indicators.
Our findings show that economic growth and development is positively related
to employment in the creative-in-traded category. While metros with a higher
share of creative-in-traded employment enjoy higher wages and incomes overall,
these benefits are not experienced by all worker categories. The share of
creative-in-traded employment is also positively and significantly associated
with higher inequality. After accounting for higher median housing costs,
routine workers in both traded and local industries are found to be relatively
worse off in metros with high shares of creative-in-traded employment, on
average. |
| Keywords: |
Creativity; clusters; cities; metros; occupations; regional development |
| JEL: |
J30 O10 R10 |
| Date: |
2015–06–24 |
| URL: |
http://d.repec.org/n?u=RePEc:hhs:cesisp:0412&r=cul |