Where Have All the Good Jobs Gone? Changes in the Geography of Work in the U.S., 1980-2021

Gordon Hanson and Enrico Moretti

No z6qkn_v1, SocArXiv from Center for Open Science

Abstract: We examine changes in the spatial distribution of good jobs across U.S. commuting zones over 1980-2000 and 2000-2021. We define good jobs as those in industries in which full-time workers attain high wages, accounting for individual and regional characteristics. The share of good jobs in manufacturing has plummeted; for college graduates, good jobs have shifted to (mostly tradable) business, professional, and IT services, while for those without a BA they have shifted to (nontradable) construction. There is strong persistence in where good jobs are located. Over the last four decades, places with larger concentrations of good job industries have tended to hold onto them, consistent with a model of proportional growth. Turning to regional specialization in good job industries, we find evidence of mean reversion. Commuting zones with larger initial concentrations of good jobs have thus seen even faster growth in lower-wage (and mostly nontradable) services. Changing regional employment patterns are most pronounced among racial minorities and the foreign-born, who are relatively concentrated in fast growing cities of the South and West. Therefore, good job regions today look vastly different than in 1980: they are more centered around human-capital-intensive tradable services, are surrounded by larger concentrations of low-wage, non-tradable industries, and are more demographically diverse. (Stone Center on Socio-Economic Inequality Working Paper)

Date: 2025-05-09
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Working Paper: Where Have All the Good Jobs Gone? Changes in the Geography of Work in the US, 1980-2021 (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:z6qkn_v1

DOI: 10.31219/osf.io/z6qkn_v1

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