Mark Muro

One of the most striking developments of the last decade has been the rapid “digitalization” of work—and with it, an urgent demand for skill-building. Digitalization is the infusion of digital skills (though not necessarily higher-end software coding) into the texture of almost every job in the economy. And it has inordinate power to both empower workers or divide them. That’s because gaps in access to digital skills engender disparate access to the nation’s best-paying, most desirable jobs and industries.

This report probes the latest trends in the geography of tech over the past decade and through the pandemic. Among the findings are:

Hopes persist that a burst of relocations by tech companies and remote workers will revitalize the American heartland. Maybe remote work and pandemic-spurred moves really are going to redistribute economic vitality more evenly across the country after a decade of excessive concentration in coastal “superstar” cities, or maybe not; while aspects of the corporate relocation story may be real, new evidence raises questions about the true potential of the remote-work-driven renewal storyline.

[Commentary] While we’re engaging in a new assessment of technology’s transformative impacts, no one should leave aside tech’s most physically enormous influence: its big role in reshaping the nation’s urban geography. Scholars have for years suggested that tech might alter the city hierarchy. Most notably, Beaudry, Doms, and Lewis showed more than a decade ago that the cities that adopted personal computers earliest and fastest saw their relative wages increase the quickest.