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WhatCriticsGetWrongAbouttheCreativeClassandEconomicDevelopmentCityLab
CityLab
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version of The Rise of the Creative Class, the human capital approach was what
inspired me to develop an alternative measure of human skill.
The two measures have meaningful, important and very useful differences.
Human capital theory uses educational attainment (typically the percentage of
adults with a college degree), a very broad measure that excludes such
successful entrepreneurs as Bill Gates and Steve Jobs, who didnt graduate
from college. My creative class measure is based on the work people actually
do, as measured by detailed Bureau of Labor Statistics data. This allows
researchers and economic developers to zero in on the actual occupational
categories science and engineering, arts and culture, business and
management, meds and eds that make up the creative class and other
occupational classes. My team and I have also done detailed empirical and
statistical comparisons between the two.
The creative class is not just a proxy measure for college graduates. Roughly
three-quarters of college grads in America work in creative class jobs, but four
in ten members of the creative class16.6 million workersdo not have
college degrees.
Bures cites a 2009 study that purports to nd no connection between my
creative class theory and economic development, quoting one of the studys
authors as saying: The measurement of thecreativeclass that Florida uses in
his book does not correlate with any known measure of economic growth and
development the emperor has no clothes. I asked a senior economist
colleague of mine to rerun these numbers. The results were profoundly
different.Where the study Bures relies on found a correlation of .001 between
average wages and the creative class, my colleague found the correlation to
bea whopping .84, signicantly higher than that for human capital/ college
grads (.65).
Other independent studies document the considerable role of the creative
class in regional economic development.In a series of careful and detailed
studies, some of which were published under the auspices of the Federal
Reserve Bank of New York, the economists Jaison Abelof the New York Fed
and Todd Gabe ofthe University of Maine foundthat the creative class is a
distinct measure from educationally based human capital, and that the creative
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Bures invokes the old chicken and egg dilemma of what comes rst, jobs or arts
and cultural creativity, an overly simplisticformulation Iwrote about herelast
month. As proof, he cites a study that purportedly uses "Granger causality
tests" to tease out the relationship between arts funding and regional growth
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development. The study(which as far as I can tell has not been published) has
little to do with my theory. Despite what Bures or others may try to claim, Ive
never said that arts spending is a driver of economic development. Rather, my
argument is that open-minded, diverse and tolerant places where vibrant
artistic, ethnically diverse and gay and lesbian communities have settled and
thrived reect underlying characteristics that are more likely to be accepting of
new ideas, and better able to incubate new innovations and house and
motivate entrepreneurial business ventures. Still, the ndings that Bures
summarizes are decidedly mixed. Arts funding seemingly does contribute to
economic development in four of the 15 metros covered by the study, including
his own chosen Minneapolis-St. Paul.
But when all is said and done, artistic and cultural creativity do add to regional
economies. At its best, innovation whether it occurs in leading cities or in
highly successful companies like Apple means mixing new designs (artistic
and cultural creativity) with technological creativity and ultimately with
economiccreativity (entrepreneurship) to create revolutionary new products,
build new rms, and create and transform whole industries. A detailed study I
conducted with my colleagues Charlotta Mellander and Kevin Stolarick,
published in the Journal of Economic Geography, found three occupational
groups to be associated with increased regional wages: science and
engineering; management and business; and arts, design, media and
entertainment.
I actually laid all this out in a 3,000 word letter I sent Bures, after he contacted
me to get my take on his article. In the course of his essay, Bures says my
"answers didnt really shed any more light than [my] books." Below, I've copied
the text of the letter I sent him. You be the judge.
Full Text of My Response Letter to Thirty Two Magazine
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City, Bill Bishops The Big Sort, Charles Murrays new book Coming
Apart, and my own Atlantic essay on The Means Migration. There
are many, many more. This migration has shaped the rise of some
cities and metro areas while adding to the challenges of others. In
terms of specific metros, places such as greater Washington DC,
Greater Boston, Greater NY, Greater San Francisco and innumerable
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others have benefited from this migration. Also, New York City
Mayor Michael Bloomberg has noted the importance not just of
regional flows or migrations of people to regional growth but of
international flows in his op ed in the Financial Times this past
week, entitled Cities Must Be Cool, Creative and in Control, where
he writes:
As individuals and capital become ever more mobile, cities are
in competition for people, visitors and business. Until
recently, competitiveness was outside a mayors domain
because the factors defining it were decided at the national
level. But today, with more than half the worlds population
living in cities generating about 80 per cent of global output
and businesses formulating growth strategies around urban
markets, cities cannot afford to cede their futures to national
governments.
...
In this respect, part of what sets cities such as New York and
London apart cannot be captured by rankings. Recent college
graduates are flocking to Brooklyn not merely because of
employment opportunities, but because it is where some of
the most exciting things in the world are happening in
music, art, design, food, shops, technology and green
industry. Economists may not say it this way but the truth of
the matter is: being cool counts. When people can find
inspiration in a community that also offers great parks, safe
streets and extensive mass transit, they vote with their feet.
How does he address the criticism that he is just describing the
effects of growth rather than the causes?
There is a huge literature on this. Economists are in wide agreement
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[1] Kevin Stolarick and Elizabeth Currid-Halkett, Creativity and the Crisis: The
Impactof Creative Workers on Regional Unemployment, Martin Prosperity
Institute, September 2011.
[2] Todd Gabe, The Value of Creativity, in David Emanuel Andersson, ke
EmanuelAndersson, and Charlotta Mellander, eds., Handbook of Creative
Cities (Cheltenham,UK: Edward Elgar, 2011), pp. 128145.
[3] See Robert Cushing, Creative Capital, Diversity and Urban Growth.
Unpublished manuscript, Austin, Texas, December 2001.
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