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

Rodríguez-Pose, Andrés and Neil Lee
Authors registered in the RePEc Author Service: Andrés Rodríguez-Pose

No 11341, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 relative 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 labor 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 and, especially, extreme 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 enough to reduce poverty.

Keywords: High-technology industries; Employment; Wages; Poverty; Cities (search for similar items in EconPapers)
JEL-codes: R11 R12 R58 (search for similar items in EconPapers)
Date: 2016-06
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Working Paper: Is there trickle-down from tech? Poverty, employment and the high-technology multiplier in US cities (2016)
Working Paper: Is there trickle-down from tech? Poverty, employment, and the high-technology multiplier in U.S. cities (2016)
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