I’ve been documenting the superstar effect. This certainly isn’t the only effect driving our economy. I plan to highlight come contrary trends in the near future. But I am constantly coming across articles that suggest superstar effects in action, and plan to keep highlighting them in this mini-series.
While much is made of the so-called “rise of the rest” in tech, a recent Wall Street Journal article noted that the bulk of high paying tech jobs, those with salaries higher than $100,000 per year, are being heavily created in just eight cities:
In theory, the high-wage jobs of the technology industry could be filled by people working anywhere. But in practice, the best tech jobs in the U.S., offering salaries in excess of $100,000 a year, are becoming increasingly concentrated in the metropolitan areas of just eight cities, according to new research.
The eight leading U.S. tech hubs account for slightly less than 10% of U.S. jobs and about 13% of overall job postings. But the cities — Seattle, San Francisco, San Jose, Austin, Raleigh, Washington, Baltimore and Boston — account for more than 27% of the listings for U.S. tech jobs, research from Jed Kolko, the chief economist of the job-search website Indeed, shows.
That’s already a striking concentration, but tech jobs with the highest salaries are even more centralized. Among jobs that typically pay over $100,000, nearly 40% of openings are in those eight cities.
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