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Is there trickle-down from tech? Poverty, employment and the high-technology multiplier in US cities

Lee, Neil and Rodríguez-Pose, Andrés (2016) Is there trickle-down from tech? Poverty, employment and the high-technology multiplier in US cities. Annals of the Association of American Geographers, 106 (5). pp. 1114-1134. ISSN 0004-5608

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Identification Number: 10.1080/24694452.2016.1184081

Abstract

High-technology industries are seen as important in helping urban economies thrive, but at the same time they are often considered as potential drivers of poverty and social exclusion. However, little research has assessed how high-tech affects urban poverty and the wages of workers at the bottom of the pyramid. This paper addresses this gap in the literature and investigates the relationship between employment in high-tech industries, poverty and the labour market for non-degree educated workers using a panel of 295 Metropolitan Statistical Areas (MSAs) in the United States between 2005 and 2011. The results of the analysis show no real impact of the presence of high-technology industries on poverty. Yet there is strong evidence that tech-employment increases wages for non-degree educated workers and, to a lesser extent, employment for those without degrees. These results suggest that while tech employment has some role in improving welfare for non-degree educated workers, tech-employment alone is not be enough to reduce poverty.

Item Type: Article
Official URL: http://www.tandfonline.com/loi/raag21#.VyiAF4QrLGg
Additional Information: © 2016 by American Association of Geographers
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HN Social history and conditions. Social problems. Social reform
JEL classification: R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes
R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade
R - Urban, Rural, and Regional Economics > R5 - Regional Government Analysis > R58 - Regional Development Policy
Sets: Departments > Geography and Environment
Collections > United States Collection
Date Deposited: 03 May 2016 10:46
Last Modified: 23 Oct 2017 10:33
Projects: 269868, ES/M007111/1
Funders: Seventh Framework Programme, Economic and Social Research Council
URI: http://eprints.lse.ac.uk/id/eprint/66296

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