On Friday, The Washington Post highlighted the views of Standford economist Rebecca Diamond, who believes that gentrification is no longer a problem for individual neighborhoods, but for cities as a whole.
As the returns to education have increased, according to Stanford economist Rebecca Diamond, the geographic segregation of the most educated workers has, too — and not by neighborhood, but by entire city.
This effectively means that college graduates in America aren’t simply gaining access to higher wages. They’re gaining access to high-cost cities like New York or San Francisco that offer so much more than good jobs: more restaurants, better schools, less crime, even cleaner air.
…Sure, the San Francisco tech worker has to spend a larger share of his income on rent than a low-skilled worker in Oklahoma City. But all of the added amenities of living in San Francisco outweigh that higher cost.
Read the full article here.