Skeptics of universities say: "But most of the people who graduate end up leaving."
1/OK, I should really write another thread about university-centric regional development, because I think people often make some (very understandable) mistakes when thinking about this issue.
Skeptics of universities say: "But most of the people who graduate end up leaving."
Educating local kids is good for the nation, but doesn't help a region much.
The way a university helps a region is through RESEARCH.
https://t.co/zud8wNQDTh
But university RESEARCH pulls in OTHER smart people from other regions, and they stay there.
Here's a paper showing that this is the main way universities increase a region's human capital: https://t.co/ofu256tsFi
Companies want to partner with university labs, so they can commercialize the technologies the labs produce. So they invest in the labs, and sometimes they even put their offices in the town.
https://t.co/NiVzQVgn5I
Answer: A little bit. But mainly because this means less tuition money that can be used to fund university research labs.
BUT, the most important thing is to fund research more!!
Critics of university-centric development like to point out that the probability of succeeding at this is very low.
But this doesn't really matter.
My hometown of College Station is no Silicon Valley. But College Station, and its surrounding region, are thriving thanks to a university.
https://t.co/2GduLv9SL5
Beyond the research-and-investment thing I discussed earlier, universities also draw in residents from small towns, creating pleasant small cities.
https://t.co/2xqpKdMZUs
https://t.co/hYSbEKxeV8
In fact, this is unlikely to be a useful approach. https://t.co/uxUcLHzmON
What we have to do is UPGRADE the RESEARCH CAPABILITIES of the second- and third-tier universities.
1. By spending more research dollars there
2. By encouraging companies to partner with the labs there
3. By letting these universities admit more high-paying foreign students
4. A new land grant program?
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This New York Times feature shows China with a Gini Index of less than 30, which would make it more equal than Canada, France, or the Netherlands. https://t.co/g3Sv6DZTDE
That's weird. Income inequality in China is legendary.
Let's check this number.
2/The New York Times cites the World Bank's recent report, "Fair Progress? Economic Mobility across Generations Around the World".
The report is available here:
3/The World Bank report has a graph in which it appears to show the same value for China's Gini - under 0.3.
The graph cites the World Development Indicators as its source for the income inequality data.

4/The World Development Indicators are available at the World Bank's website.
Here's the Gini index: https://t.co/MvylQzpX6A
It looks as if the latest estimate for China's Gini is 42.2.
That estimate is from 2012.
5/A Gini of 42.2 would put China in the same neighborhood as the U.S., whose Gini was estimated at 41 in 2013.
I can't find the <30 number anywhere. The only other estimate in the tables for China is from 2008, when it was estimated at 42.8.
One thing I've been noticing about responses to today's column is that many people still don't get how strong the forces behind regional divergence are, and how hard to reverse 1/ https://t.co/Ft2aH1NcQt
— Paul Krugman (@paulkrugman) November 20, 2018
See this thing that @lymanstoneky wrote:
And see this thing that I wrote:
And see this book that @JamesFallows wrote:
And see this other thing that I wrote:
Some are predicting a shift to remote work and distributed companies.
Let's take a hard look at what that would actually
2/We're all familiar with the trend of tech companies and other knowledge industries (finance, biotech, etc.) piling into a few tech hubs, raising rents and house prices.
Now some think the advent of Zoom, Slack, etc. might reverse this trend.
https://t.co/nQVCJrKvrB

3/But escaping the superstar cities is going to be tough.
The forces keeping tech companies in places like SF are so strong that these regions have essentially become prisons for these companies.

4/In order to escape the prison of the superstar cities, tech companies and other knowledge industries will have to overcome the Four Jailers of Industrial Clustering:
1. In-person office productivity
2. Thick market effects
3. Knowledge spillovers
4. City life amenities
5/I'm actually pretty optimistic that companies can find ways to make remote work productive.
Studies show that working from home *some* of the time actually tends to raise
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