Posts Tagged ‘diversity’

Podcast: migration, cities, Brexit

November 3, 2017

(c) 2014 uncovention

I did a Centre for Cities podcast on migration, urban economies and Brexit a few weeks back, with Andrew Carter (CFC) and Nicola Headlam (Oxford Uni).

Here’s the blurb:

From the benefits of cognitive diversity in the workforce to the success of the entrepreneur program, our guests offer insights from their own research on the less publicised impacts migrants have on the economy. They go on to discuss the big question; does net migration have an overall positive or negative effect on the UK economy? Finally they consider how Brexit might affect migration patterns and examine what benefits diasporic communities can have on facilitating trade links with new markets.

You can listen here – it’s about an hour in total.

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Citizen Jane

May 8, 2017

Like a boss.

We went to see the new Jane Jacobs documentary Citizen Jane: Battle for the City. It’s pretty good, with plenty both for Jacobs fans and those who don’t know her work. It pulls in some big-name contributors, including Saskia Sassen, Michael Sorkin, Mindy Fullilove, Mike Davis (!) and Geoffrey West (*). But it also – perhaps unintentionally – shows up some of the limits of Jacobs’ thinking as it applies to today’s cities. Here’s a review of sorts.

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The film has two particular strong points. The first is the precis of Jacobs’ most famous work, The Death and Life of Great American Cities. Director Matt Tyrnauer nicely summarise the key ideas: cities as organised complexity; street life as a ‘dance’ of uses and users; the rebellion against modernist city planning, cities for the car, and high rise living; the importance of ‘eyes on the street’, mixed uses, old and new buildings, and short blocks – concepts now hard coded into masterplans and design standards in cities across the world. Crucially, these ideas developed over many years’ close observation of New York streets and neighbourhoods, and through test runs in Jacobs’ journalism: her first book arrived in the world fully formed and ready for use.

 

 

The film’s other big plus is its retelling of the epic struggle between Jacobs and city planner Robert Moses in 1950s and 60s New York. With minimal resources, Jacobs somehow turned around Moses’ big money plans to bulldoze and run roads through Washington Square Park, the West Village and ultimately Lower Manhattan itself. These are perhaps the most gripping parts of the picture. Moses is a monstrous figure – see also Robert Caro’s 900-page biography, summarised here by Jackson Lears – while Jacobs is revealed to be a total badass.

Machine politics, corruption and the abuse of power run up against agile and well-networked social activism: we see Jacobs wearing a ‘Mailer for Mayor’ badge, organising a series of brilliant publicity stunts and photo opportunities, and roping in Susan Sontag, Margaret Mead and Eleanor Roosevelt to help out.

 

 

The gender dynamics are striking. Moses summons an army of besuited male planners, and notoriously dismisses Jacobs’ female-led network as ‘just a bunch of mothers’: fatally underestimating his opponents, but also, as a talking head points out, ’you’d only say that if you thought people didn’t matter at all’. Jacobs’ publisher sends Moses a copy of Death and Life: he returns it in a terse note (‘Sell this junk to someone else’); Lewis Mumford dismisses the book as ‘Mother Jacobs’ Home Recipes’.

The filmmakers link Jacobs’ tactics and successes to other 1960s social struggles: feminism, the environmental movement, civil rights. There’s an important point here about shared repertoires of protest tactics. It’s also true that Jacobs was both a feminist and an environmentalist. But I needed a bit more convincing that the bigger links really held together.

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The racism in US post-war urban planning is still shocking to see. James Baldwin appears in the film to point out that ‘urban renewal means negro removal’, with housing projects and highways used as tools of segregation. The minority urban poor were pushed into badly designed blocks at the city’s edge, just as in France the following decade – with similarly grim results for the victims.

The film starts to connect these practices to Moses’ development model, which raised land values in redeveloped zones, and leveraged huge federal budgets. I was left wanting to know more about the political economy: was this racial redlining? Patronage politics? Or some toxic mixture of the two?

The Cross-Bronx Expressway (1948-72) is perhaps one of the most notorious Moses schemes, literally cutting the neighbourhood in half and blighting lifechances for years afterwards. As Mike Davis points out, it’s ‘perhaps the single most damaging urban development in US history’. Jacobs was active in New York at the time, and the film is curiously silent about this. Was she involved in opposing this? If not, why not? Did she try and fail? (Was her model of protest anchored in the neighbourhoods she knew? Did construction help spur her into action elsewhere in the city?)

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If the film is sometimes in danger of reifying Jacobs’ older ideas, it also misses out some of her newer thinking. That’s a shame: The Economy of Cities (1969) is a foundational text in urban economics, with important ideas about how cities help innovation to happen, long term growth and urban resilience. Cities and the Wealth of Nations (1985), which posits cities over nation-states as the key unit of development, feels ahead of its time. And her environmental work – which I know less well – also looks increasingly prescient.

The film also skips some chances to reassess that legacy. Jacobs was a progressive and a futurist – but not a fan of big government. Her anti-planning stance has made her popular with the libertarian right: it’s the antithesis not just of the government cynicism that produced Pruitt-Igoe and Ronan Point, but also the state-funded optimism that gave us the LCC and Park Hill.

Sure, the Lower Manhattan Expressway would have been a concrete stake through the city’s heart. But I dare you not to look at the renderings and at least wonder what a Brutalist icon it would have made.

 

 

Some of the limitations in Jacobs’ vision become clearer in the second half of the film, which lays up Jacobs’ neighbourhood prescriptions against urbanisation outside the West. As Saskia Sassen puts it, the pace and style of urbanisation in the urban cores of China and India are ‘Moses on steroids’ . ‘How can we apply Jane Jacobs’ thinking to these cities?’, asks another contributor.

Good question. The film drops some hints: successful urbanisation can’t shut out the public realm; cheaply-built towers are a terrible false economy; existing urban settlements, however visually shabby or informal, embody their own ‘dances’ and should be valued by planners, not bulldozed away (see Stewart Brand for more on this).

Nevertheless, the film can’t escape the conclusion that Death and Life … has plenty of say about preserving old neighbourhoods in old cities, but rather less about building new ones:  Jacobs’ New York was losing population, as their heavy industry began to be globalised away; the cities of the BRICS are growing at speed. Equally, today’s New York is struggling with an affordable housing crisis; other US cities are still feeling the aftershocks of de-industrialisation.

As Jacobs put it in 1958: ‘the best way to plan a downtown is to see how people use it today; to look for its strengths and to exploit and reinforce them.’ Today’s urban crises need urgent solutions, and significantly, by her death in 2006, Jacobs didn’t seem so interested in these issues: as her last interviews show, she had moved on to other things.

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The film is a great appreciation of Jane Jacobs’ finest hour. Her elegant and radical thinking was inevitably a product of its time. But bettering our contemporary cities may require both a re-tooling of Jacobs’ ideas, and new thinking from other voices.

‘After Florida’ wins a prize

December 21, 2016

I’m delighted (and honestly, surprised) to have won the 2016 Jim Lewis Prize for my paper on the economics of diversity – After Florida – which is out in European Urban and Regional Studies. The prize is awarded for the most innovative paper published in EURS the previous year.

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You can read the whole paper here. To give you a flavour, the abstract is below.

In recent years, most European countries have experienced substantial demographic changes and rising cultural diversity. Understanding the social and economic impacts of these shifts is a major challenge for policymakers. Richard Florida’s ideas have provided a popular – and pervasive – framework for doing so. This paper assesses Florida’s legacy and sets out a ‘post-Florida’ framework for ‘technology, talent and tolerance’ research. The paper first traces the development of Florida’s ideas. ‘Florida 1.0’, encapsulated by the Three Ts framework, has performed badly in practice. There are problems in bringing causality to the fundamental relationships, and in consistently replicating the results in other countries. ‘Florida 2.0’, though suggests that Creative Class metrics have value as alternative measures of human capital. This creates space for a post-Florida agenda based on economic microfoundations.

I argue that the growing body of ‘economics of diversity’ research meets these conditions, and review theory and empirics. Urban ‘diversity shocks’ shift the size and composition of populations and workforces, with impacts operating via labour markets, and through wider production and consumption networks. While short-term labour market effects are small, over time low-value industrial sectors may become migrant-dependent. Diversity may help raise productivity and wages through innovation, entrepreneurship, market access and trade channels. Bigger, more diverse cities help generate hybridised goods and services, but may also raise local costs through crowding. All of this presents new challenges for policymakers, who need to manage diversity’s net effects, and address both economic costs and benefits.

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The paper has its origins in the intro chapter to my PHD thesis. If you fancy wading deeper in, that’s here.

New article: ethnic diversity, firm performance and cities

August 8, 2016

Paul Klee, Harmony of Northern Fauna, 1927

I’ve got a new paper published in Environment and Planning A. There’s an open access version here.

The research looks at the links between ethnic diversity in firms’ top teams (owners, partners and directors) and the performance of those firms (specifically, how much revenue they make).

I also look at how those linkages  vary across different types of firms, and how different types of urban environment may help or may not.

There’s now a decent diversity literature (see this academic review, or this great Andy Haldane speech). But we know much less about these gnarlier issues.

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I find positive diversity-links – but only for certain kinds of companies. The strongest links are for a group of large,  knowledge-intensive businesses who comprise about 16% of my sample. The role of cities is also complex. For this first group, being in  London amplifies the diversity ‘effects’.

But for a second, smaller group of younger companies, diversity channels seem to be swamped by London’s higher costs and greater competition. These firms perform better when in smaller, cheaper cities like Manchester or Birmingham.  In turn, that suggests policies to promote ethnic diversity in firms need to be quite carefully tailored to industry and local conditions.

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Here’s the abstract:

A growing literature examines how ethnic diversity influences economic outcomes in cities and inside firms. However, firm–city interactions remain more or less unexplored. Ethnic diversity may help firm performance by introducing a wider range of ideas,  improving scrutiny or improving international market access. Urban locations may amplify in-firm processes via agglomeration economies, externalities from urban demography or both. These firm–city effects may be more beneficial for knowledge-intensive firms, and  for young firms with a greater dependence on their environment. However, firm–city interactions could be negative for cost and  competition-sensitive younger firms, or for firms operating in poorer, segregated urban markets. I deploy English cross-sectional data to explore these issues within firms’ ‘top teams’, using latent class analysis to tackle firm-level heterogeneity. I find positive diversity–performance links for larger, knowledge-intensive firms, and positive firm–city interactions both for larger, knowledge-intensive firms in London and for younger, smaller firms in second-tier metros.

Read the article here. Or here’s the ungated version.

Jane Jacobs: City Limits

May 18, 2016

(c) 1971 Laurence Hyde / NFB

City Limits is a lovely 1971 film about Jane Jacobs. You can watch the whole thing here; it’s about 30 mins long. Directed by Laurence Hyde for the Canadian National Film Board, the documentary features Jacobs talking through her ideas, interspersed with some terrific footage of Toronto, New York, London and other cities around the world. I’m indebted to Martin Dittus for digging it out of the NFB archives.

(c) 1971 Laurence Hyde / NFB

The 30-minute film is worth watching for many reasons. For starters, Jacobs herself appears in much of it – sat in a park, shopping in a market, buying a newspaper, and at one point clambering into a helicopter to survey Toronto from above.

(c) 1971 Laurence Hyde / NFB

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At the same time, the film is a great summary of Jacobs’ big ideas about how urban neighbourhoods – and cities – work, when they succeed and when they fail. Jacobs is a superb writer, but she never spells it out for you. The film does, and in the author’s own words:

A city is an organism, and a very complex  one, and an ever changing one.  I would like us to see cities as ecologies – because that’s what they are. As surely as the ecologies of the natural world. The ecology of a city is of the same order of complexity as the ecology of a woodland. And this is what proper city planning ought to be directed to.  

This is the essence of a crucial chapter buried in the back of The Death and Life of Great American Cities: ‘The Kind of Problem a City Is’ (page 558 in my edition). It’s the research design for the book: it’s also Jacobs’ whole way of doing urbanism.

jacobs34 jacobs21 jacobs16(c) 1971 Laurence Hyde / NFB

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Watching the film reminds me how prescient Jacobs was. There’s a surprising sequence on cultural diversity, which Jacobs presents both as an amenity, and as a channel of innovation:

Foreign districts introduce extra dimensions into a city. They often introduce new kinds of food, new customs, new music, even new kinds of clothing. And they’re a lot of fun for people who aren’t familiar with those customs, foods and so on. … that’s the way things spread in cities. And from cities to other places.

(c) 1971 Laurence Hyde / NFB

This innovation argument is the big idea from The Economy of Cities. ‘Jacobian externalities’ are knowledge spillovers across sectors: these are self-reinforcing, and help cities become resilient to economic shocks. What I hadn’t previously spotted was that Jacobs sees *cultural* and *economic* diversity as so closely intertwined.

(c) 1971 Laurence Hyde / NFB

Jacobs also makes some subtle points about mobility and technology. She came to prominence in New York opposing Robert Moses’ megaschemes for urban motorways and ‘sum clearance’:  not surprisingly, then, much of the film is concerned with congestion and pollution. But Jacobs has a much more profound argument:

People worry that there’s too much progress – in fact it’s just the opposite. … Automobiles don’t represent     progress any more – they’re pretty old …

There’s no solution in saying people should live close to their work and shouldn’t travel. People change their  jobs, goods have to move. So the problem is mobility – but the automobile isn’t providing much of an answer.

In other words: the car-based city is old thinking. The future is mass transit, bikes, and mobility as a service, enabled by technology. Scroll forward to 2016, and that future is taking shape all around us.

In 1971, however, this meant ‘Dial-a-Bus’ [link7] – a prehistoric Uber Pool, summoned to your house by landline and whisking you and fellow commuters to the local train station.

(c) 1971 Laurence Hyde / NFB

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Jacobs was a thinker and an activist, not a consultant. It’s not as easy as it looks to derive practical guidance from her work – not least because she is the original full-field urbanist, drawing together history, built form, economics, social structure and culture into her analysis. Watching the film is a salutary reminder of this; it also emphasises how much Jacobs’ work draws on close observation of specific places she knows well.

Death and Life … tends to be distilled into four urban design tropes: high density, short city blocks, mixed use, old buildings. Result: every 1990s block of flats with space for a shop at the bottom (but VAT rules that incentivise developers to knock down old buildings). That’s clearly not enough to make a street or neighbourhood ‘work’, if it has no relation to the demographics and socio-economic life around it. The film is a neat reminder that we shouldn’t reduce Jacobs to design code box-ticking. But it also highlights just how tricky it is to roll her ideas into generalised practice. ‘What should a city be like?’ asked Reason in 2001. Jacobs’ answer: ‘it should be like itself’.

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(c) 1971 Laurence Hyde / NFB

The film also highlights how much Jacobs’ thinking about urbanism is a product of its time. All around her cities were losing people to the suburbs, and losing old urban grain to modernist, car-centric city form. Many neighbourhoods were emptying out. In London and New York today, all of that has flipped around: populations are growing, high-value activity is back, and we have an urgent crisis of housing and cheap space.

Ed Glaeser famously has a go at Jacobs in The Triumph of the City, arguing that preserving old buildings simply chokes off the supply of bigger, newer ones, and the subsequent gentrification pushes out the artists and mixed communities she sought to preserve. I’m not sure that’s completely fair: she was dealing with a different era’s problems. But it also seems that she had fairly little to say about today’s urban crises. That is the message from of this 2003 Brick interview, conducted three years before Jacobs’ death. She’s asked whether today’s cities are in better shape. She replies:

In some ways there’re worse and in some ways better. The things that are worse I don’t think are so much focused or anchored in cities as they are in our North American culture as a whole … I think that things are getting better for cities in that there’s not the great ruthless wiping away of their most interesting areas that took place in the past … however, I think the urban sprawl outside of cities has gotten much worse.

In the Reason interview she goes a little further, citing Portland, Seattle and San Francisco as ‘attractive places … where good things are being done.’ The interviewer asks about gentrification and rising prices. She bats away the question.

By this point her  writing had also moved on to other issues:  the nature of work, economic ecosystems. Clearly, she wasn’t much interested in going back to the street.

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It’s early morning, and the city is beginning to dance. The camera follows Jacobs as she crosses a busy street. A man walking beside her notices the camera and gazes in increasing curiousity at our heroine, trying to place her. Unable to do so, he wanders away. Lost in thought, she disappears into the crowd.

jacobs9 jacobs8 jacobs10 (c) 1971 Laurence Hyde / NFB

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Here’s the link to the film again.

 

What I did in New Zealand

August 4, 2015

Matiu / Somes Island. (c) 2015 Max Nathan

Am back from New Zealand and just about over the jetlag. Thanks again to Motu and the Caddanz team for hosting me. I’m already plotting a return trip …

Here’s my talk from the Pathways conference. This is on the economics of migration and diversity, and brings together various projects from the past few years.

Here are slides and audio from my public policy talk at Motu. This looks at the What Works agenda in the UK, particularly the work of the What Works Centre for Local Economic Growth, and some of the opportunities and challenges these institutions face.

Same Difference?

June 25, 2014

v2

I have a new article out in the Journal of Economic Geography. Originally one of my PHD papers, it looks at the demography of innovation, particularly the roles of what I call ‘minority ethnic inventors’.

Here’s the abstract:

Minority ethnic inventors play important roles in US innovation, especially in high-tech regions such as Silicon Valley. Do ‘ethnicity–innovation’ channels exist elsewhere? Ethnicity could influence innovation via production complementarities from diverse inventor communities, co-ethnic network externalities or individual ‘stars’. I explore these issues using new UK patents microdata and a novel name-classification system. UK minority ethnic inventors are spatially concentrated, as in the USA, but have different characteristics reflecting UK-specific geography and history. I find that the diversity of inventor communities helps raise individual patenting, with suggestive influence of East Asian-origin stars. Majority inventors may benefit from multiplier effects.

The full paper is here. You can also read the working paper version, though bear in mind there are some differences to the final edit. I’ll upate this post at some point with a proper pre-print.

 

New articles published in Economic Geography, European Urban and Regional Studies

April 29, 2014

(c) Max Nathan 2011

Since last summer I’ve been pretty focused on helping get the What Works Centre off the ground, so I’m posting these two articles rather late in the day.

The first is online at European Urban and Regional Studies. It’s my over-ambitious attempt to build a framework for thinking about the economic impacts of diversity in cities, drawing on my own work as well as the growing international literature. Specifically, I critique and try to move beyond Richard Florida’s thinking on these issues.

Here’s the abstract:

In recent years, most European countries have experienced substantial demographic changes and rising cultural diversity. Understanding the social and economic impacts of these shifts is a major challenge for policymakers. Richard Florida’s ideas have provided a popular – and pervasive – framework for doing so. This paper assess Florida’s legacy and sets out a ‘post-Florida’ framework for ‘technology, talent and tolerance’ research. The paper first traces the development of Florida’s ideas. ‘Florida 1.0’, encapsulated by the Three Ts framework, has performed badly in practice. There are problems in bringing causality to the fundamental relationships, and in consistently replicating the results in other countries. ‘Florida 2.0’, though suggests that Creative Class metrics have value as alternative measures of human capital. This create space for a post-Florida agenda based on economic micro-foundations. I argue that the growing body of ‘economics of diversity’ research meets these conditions, and review theory and empirics. Urban ‘diversity shocks’ shift the size and composition of populations and workforces, with impacts operating via labour markets, and through wider production and consumption networks. While short-term labour market effects are small, over time low-value industrial sectors may become migrant-dependent. Diversity may help raise productivity and wages through innovation, entrepreneurship, market access and trade channels. Bigger, more diverse cities help generate hybridised goods and services, but may also raise local costs through crowding. All of this presents new challenges for policymakers, who need to manage diversity’s net effects, and address both economic costs and benefits.

The full piece is here. There’s no pre-print available, but you can access this paper in the IZA Journal of Migration which covers some of the same ground.

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The second piece is out in Economic Geography, and is co-authored with Neil Lee. This is an empirical study testing links between firm-level demographics, innovation and entrepreneurship. We use a recent sample of London businesses, and uncover some small but robust diversity effects.

Here’s the abstract:

A growing body of research is making links between diversity and the economic performance of cities and regions. Most of the underlying mechanisms take place within firms, but only a handful of organization-level studies have been conducted. We contribute to this underexplored literature by using a unique sample of 7,600 firms to investigate links among cultural diversity, innovation, entrepreneurship, and sales strategies in London businesses between 2005 and 2007. London is one of the world’s major cities, with a rich cultural diversity that is widely seen as a social and economic asset. Our data allowed us to distinguish owner/partner and wider workforce characteristics, identify migrant/minority-headed firms, and differentiate firms along multiple dimensions. The results, which are robust to most challenges, suggest a small but significant “diversity bonus” for all types of London firms. First, companies with diverse management are more likely to introduce new product innovations than are those with homogeneous “top teams.” Second, diversity is particularly important for reaching international markets and serving London’s cosmopolitan population. Third, migrant status has positive links to entrepreneurship. Overall, the results provide some support for claims that diversity is an economic asset, as well as a social benefit.

The full piece is here, and a pre-print version is here.

IZA

July 15, 2013

(c) 2013 IZA

I’ve been asked to join IZA as a Research Fellow. For someone who works on labour economics issues, this is pretty exciting. IZA is one of the best research networks around, and has about 1100 Fellows globally (all of whom are far better qualified than I am).

All IZA appointments are virtual, so this will run alongside my LSE and NIESR positions. I’ll be contributing to the Institute’s Discussion Paper series, and – I hope – developing some collaborative work with other researchers there.

Barriers to the brightest?

July 2, 2013

The UK Government’s Migration Advisory Committee has just published some new research on the economic impacts of high skilled migrants, written by me alongside colleagues from NIESR and the Migration Observatory. We did a major review of the international evidence, and spoke to a number of Tier 1 entrepreneurs and investors living and working in the UK.

We found a number of areas where UK policy design could be smarter. In particular, we’ve suggested the UK start moving towards a genuine ‘start-up visa’ of the kinds operating in Canada and Chile, and being debated right now in the US.

You can read more in NIESR’s press release here. Or download the full report here.

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