ECON 1 Lecture Notes - Lecture 17: Physical Capital, Human Capital
Document Summary
Eco 1 : introduction to economics- lecture 17: the new geography of jobs pt 4. Physical capital refers to the tools a workers has. Advanced technology, strong logistics, abundance of resources. One america is the brain hubs- areas with well-educated labor and a strong innovation sector. Another america is traditional- low skilled areas where manufacturing jobs dominate. Strongest labor demand and supply in the us. Firms and workers relocate here from all parts of the globe. Provides increase in both labor supply and demand. Before 1970, infrastructure and natural resources were important. What makes brain hubs attractive to firms. Brain hubs are expensive places to do business. All three qualities are self-reinforcing; i. e. continues the trend. Thick labor markets are like dating sites. The thicker the markets, the more productive the firms and workers are. Symbolic relationship between firms and service providers. Relationship between firms and services are directly related. More firms brings in more services and vice-versa.
