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The second characteristics o f the post-industrial economy is the growing

importance o f human capital. Human capital can be described as the stock o f knowledge, habits, and social and personality attributes that contribute to the ability to perform labor, which creates additional value. Human capital is particularly important in the post­

industrial society because o f the role o f creativity, entrepreneurship, and innovation required to develop the tertiary sector. It is difficult, however, to measure. The most common method is by examining rates o f higher education, which will be done below.

Abel and Gabe demonstrated that a one-percentage point increase in the proportion o f residents with a college degree is associated with about a two percent increase in metropolitan area GDP per capita.12 The particular types o f degrees are also important, as different undergraduate majors provide different skills in the labor force. Florida, Mellander, and Stolarick discovered that knowledge about the subjects o f administration and management, economics and accounting, mathematics, computers and electronics, and telecommunications play the largest roles in regional economic development.13 Therefore, after examining aggregate data on bachelor’s degrees, the specific fields o f study will be compared. These figures offer a general description o f the importance o f human capital in each metropolitan area.

1")

Jaison R. Abel and Todd M. Gabe, "Human Capital and Economic Activity in Urban America," (New York: Federal Reserve Bank o f New York, 2010), 1.

13 Richard Florida, Charlotta Mellander, and Kevin Stolarick, "Inside the Black Box o f Regional Development - Human Capital, the Creative Class and Tolerance," Journal o f Economic Geography 8 (2007).

As economies develop, individuals attain increasingly higher levels o f formal education. Thus, it makes little sense to examine each case individually for increasing levels o f educational attainment. Instead, each indicator is displayed comparatively.

Table 4.7 below details the percent o f the total populations aged 25 years and older with a bachelor’s degree only from 1990 to 2013. This statistic indicates the percentage o f graduates who either stopped pursuing additional formal degrees or have not yet

graduated with a higher degree. In 1990, Cleveland had the largest proportion o f the 25 years and older population with a bachelor’s degree with 12.3%. Beginning in 2000 and continuing to the present, Pittsburgh has had the greatest, ending the period with nearly 20%. For the entire 23 year period, Buffalo kept the lowest percentage o f the three.

Table 4.7: Percent of the Total Populations Aged 25 Years and Older with a Bachelor’s Degree Only

1990 2000 2010 2013

Buffalo 11.3 13.7 16.1 17.4

Cleveland 12.3 14.9 17.2 18.3

Pittsburgh 11.7 15.1 18.4 19.8

{Source: “Census o f Populations: Social and Economic Characteristics,” 1990-2010;

American Community Survey, “Selected Economic Characteristics: ACS 1-Year Estimates,” U.S. Census Bureau, 2013)

Figure 4.5 below charts the pattern o f bachelor’s degree-only recipients as a percentage o f the 25 and older population in each respective metropolitan area. All areas show increasing percentages at each decade interval, but Pittsburgh’s rate o f change is greater than the other cities.

Figure 4.5: Percent of the Total Populations Aged 25 Years and Older with a Bachelor’s Degree Only

1990 2000 2010 2013

■ B u ffa lo D Cleveland ■Pittsburgh

(Source: “Census o f Populations: Social and Economic Characteristics,” 1990-2010;

American Community Survey, “Selected Economic Characteristics: ACS 1-Year Estimates,” U.S. Census Bureau, 2013)

The higher education trends are further elaborated by looking at the percentage o f the 25 and older population with a graduate or professional degree, detailed in Table 4.8 below. The trend differs from looking strictly at bachelor’s degrees. In this table, Buffalo maintains the highest percentage o f the total population with a graduate or professional degree throughout the period between 1990 and 2013. Cleveland held even with Pittsburgh in 1990 and fell behind for the rest o f the time period. While the above table indicated that the Buffalo area had the least percentage o f the population with

bachelor’s degrees than the other two areas, Buffalo has a greater proportion o f individuals with advanced degrees. Thus, even though Buffalo lags in individuals achieving only a bachelor’s degree, it excels in individuals seeking graduate and professional degrees. This advanced degree trend o f metropolitan areas is charted in Figure 4.6 below.

Table 4.8: Percent of the Total Populations Aged 25 Years and Older with a Graduate or Professional Degree

1990 2000 2010 2013

Buffalo 7.5 9.5 12.2 13.1

Cleveland 6.7 8.4 10.5 11.5

Pittsburgh 6.7 8.7 10.8 12.5

(Source: “Census o f Populations: Social and Economic Characteristics,” 1990-2010;

American Community Survey, “Selected Economic Characteristics: ACS 1-Year Estimates,” U.S. Census Bureau, 2013)

Figure 4.6: Percent o f the Total Populations Aged 25 Years and Older with a Graduate or Professional Degree

1990 2000 2010 2013

® Buffalo ■ Cleveland ■Pittsburgh

(Source: “Census o f Populations: Social and Economic Characteristics,” 1990-2010;

American Community Survey, “Selected Economic Characteristics: ACS 1-Year Estimates,” U.S. Census Bureau, 2013)

Giving greater nuance to the analysis o f higher education in the three cases, Table 4.9 shows the percent o f the 25 years and older population with a bachelor’s degree or higher. When the two measures from above are combined, it is seen that nearly a full third o f Pittsburgh’s 25 and older population has a bachelor’s degree or more in 2013, followed by Buffalo at 30.5% and Cleveland at 29.8%. Prior to 2000 and going back at least until 1950, Cleveland had the greatest proportion o f metropolitan population with at least a bachelor’s degree, while Pittsburgh and Buffalo traded places on the list five times

in the entire period. These trends are graphically represented in Figure 4.7 below.

Table 4.9: Percent of the Total Populations Aged 25 Years and Older with a Bachelor’s Degree or Higher

1950 1960 1970 1980 1990 2000 2010 2013

Buffalo 5.8 7.2 9.6 14.5 18.8 23.2 28.3 30.5

Cleveland 7.3 8.4 10.9 15.7 19.0 23.3 27.7 29.8 Pittsburgh 6.0 7.2 9.1 14.6 18.4 23.8 29.2 32.3

(Source: “Census o f Populations: Social and Economic Characteristics,” 1950-2010;

American Community Survey, “Selected Economic Characteristics: ACS 1-Year Estimates,” U.S. Census Bureau, 2013)

Figure 4.7: Percent o f the Total Populations Aged 25 Years and Older with a Bachelor’s Degree or Higher

35

30

25

20

15

10

5

0

1950 1960 1970 1980 1990 2000 2010 2013

Buffalo — — Cl evel and • Pittsburgh

{Source: “Census o f Populations: Social and Economic Characteristics,” 1950-2010;

American Community Survey, “Selected Economic Characteristics: ACS 1-Year Estimates,” U.S. Census Bureau, 2013)

It has been shown above that in recent decades, Pittsburgh has had the greatest proportion o f the population with bachelor’s degrees. Particularly important for post­

industrial economic growth, however, is that these degrees are awarded in the fields o f Business, Computers, Mathematics, Statistics, and Communications. Table 4.10 details the number o f individuals 25 years and older with degrees in each field for the Buffalo metropolitan area between 2009 and 2013. It also shows the percentage o f the total

population these degrees represent. The population o f the Buffalo metropolitan area rose steadily from 771,830 in 2009 to 783,045 in 2013 and, with it, the number o f individuals in these fields, albeit with a decline from 2009 to 2010. Accordingly, represented as a percentage o f the 25 and older population, these fields made up 7.8% %in 2009, 7.7% in 2010, and rose to 8.3 in 2013.

Table 4.10: Population 25 Years and Older with a Bachelor’s Degree in Business, Computers, Mathematics, Statistics, and Communications, with Percentage of Total Population 25 Years and Older for Buffalo MSA

2009 2010 2011 2012 2013

Business 44,071 43,533 45,979 46,358 46,818

Computers,

Mathematics, Statistics ^{8,159 8,170 8,083 8,232 8,512}

Communications 8,071 7,648 9,345 9,517 9,314

Total 60,301 59,351 63,407 64,107 64,644

Bus, Comps, Math,

Stats ^{60,301 59,351 63,407 64,107 64,644}

25+ Population 771,830 773,793 777,039 779,253 783,045

Percentage of Total 7.8 7.7 8.2 8.2 8.3

(Source: American Community Survey, “Demographic and Housing Estimates: ACS 1- Year Estimates,” U.S. Census Bureau, 2009-2013)

Table 4.11 below details the same statistic for the Cleveland metropolitan area.

The Cleveland area’s population slid slightly from 1,424,453 in 2009 to 1,421,809 in 2011, then rose to 1,426,443 in 2013. Individuals holding degrees in these particular fields fell from 123,099 in 2009 to 120,238 in 2010, then rose steadily to 135,636 in 2013.

The population o f individuals with degrees in Business and Communications followed this same trend, with dips in 2010 and steady increases after. Likewise, the percentage o f individuals with these particular degrees dipped from 8.6% in 2009 to 8.4% in 2010 and rose steadily to 9.5% in 2013.

Table 4.11: Population 25 Years and Older with a Bachelor’s Degree in Business, Computers, Mathematics, Statistics, and Communications, with Percentage of Total Population 25 Years and Older for Cleveland MSA

2009 2010 2011 2012 2013

Total 123,099 120,238 128,654 132,218 135,636

Bus, Comps, Math,

Stats ^{123,099 120,238 128,654 132,218 135,636}

25+ Population 1,424,453 1,423,619 1,421,809 1,425,156 1,426,443

Percentage of Total 8.6 8.4 9.0 9.3 9.5

(Source: American Community Survey, “Demographic and Housing Estimates: ACS 1- Year Estimates,” U.S. Census Bureau, 2009-2013)

Table 4.12 below shows the same statistic for the Pittsburgh metropolitan area.

The area’s total 25 years and older population fell slightly from 1,670,624 in 2009 to 1,666,427 in 2010, then rose steadily to 1,690,558 in 2013. The number o f individuals with business degrees rose steadily and significantly from 97,231 in 2009 to 123,174 in 2013. This trend is likewise seen in the total number o f individuals with degrees in business, computers, mathematics, statistics, and communications: 142,050 in 2009 to

175,695 in 2013. The percentage o f the population 25 years and older also rose steadily from 8.5 in 2009 to 10.4 in 2013.

Table 4.12: Population 25 Years and Older with a Bachelor’s Degree in Business, Computers, Mathematics, Statistics, and Communications, with Percentage of Total Population 25 Years and Older for Pittsburgh MSA

2009 2010 2011 2012 2013

Business 97,231 101,237 104,741 108,982 123,174

Computers,

Mathematics, Statistics ^{24,763 24,964 25,767 26,643 26,394} Communications 20,056 23,955 23,631 26,188 26,127

Total 142,050 150,156 154,139 161,813 175,695

Bus, Comps, Math,

Stats ^{142,050 150,156 154,139 161,813 175,695}

25+ Population 1,670,624 1,666,427 1,676,173 1,682,175 1,690,558

Percentage of Total 8.5 9.0 9.2 9.6 10.4

(Source: American Community Survey, “Demographic and Housing Estimates: ACS 1- Year Estimates,” U.S. Census Bureau, 2009-2013)

The patterns described above for each case are compared below in Figure 4.8, which graphs the 25 years and older population with bachelor’s degrees in these specialized fields o f business, computers, mathematics, statistics, and communications for the Buffalo, Cleveland, and Pittsburgh metropolitan areas. The graph indicates that Pittsburgh has the greatest total number o f individuals with degrees in these fields and Buffalo has the least. Pittsburgh also has the highest level o f growth in these degree fields, and Buffalo has the lowest, far below Cleveland.

Figure 4.8: Total Population 25 Years and Older with Bachelor’s Degrees in the Fields of Business, Computers, Mathematics, Statistics, and Communications as for Buffalo, Cleveland, and Pittsburgh

200,000

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

2009 2010 2011 2012 2013

Buffalo — Cleveland • Pittsburgh

(Source: American Community Survey, “Demographic and Housing Estimates: ACS 1- Year Estimates,” U.S. Census Bureau, 2009-2013)

Even though Pittsburgh has a higher rate o f growth in these degree fields and a greater overall number, the difference is not as wide when compared to total population figures. Figure 4.9 shows the percentage o f the 25 years and older population o f each metropolitan area that has a degree in business, computers, mathematics, statistics, and communications. As with the above indicators, Pittsburgh has a greater proportion o f these individuals, but only since 2010. In 2009, Cleveland had a greater percentage.

Buffalo remains in a distant third. In addition, between 2012 and 2013, the Pittsburgh trajectory became steeper.

Figure 4.9: Population 25 Years and Older with Bachelor’s Degrees in the Fields of Business, Computers, Mathematics, Statistics, and Communications as for Buffalo, Cleveland, and Pittsburgh as a Percentage of Population 25 Years and Over

10.5

10.0

9.5

8.5

7.5

7.0

2010 2011 2012 2013

2009

"■ ♦■ " B u ffalo “ ■ ♦ “ ■Cleveland • Pittsburgh

(Source: American Community Survey, “Demographic and Housing Estimates: ACS 1- Year Estimates,” U.S. Census Bureau, 2009-2013)

The above indicators describe the importance o f human capital in each o f the metropolitan areas. While Buffalo has the greatest percentage o f the 25 and older population with a graduate or professional degree, Pittsburgh leads in the rest o f the

indicators, including greatest percentage o f individuals with a bachelor’s degree only;

greatest percentage o f individuals with at least a bachelor’s degree; and highest population and percentage o f individuals holding a degree in business, computers, mathematics, statistics, or communications. Most o f the indicators also place Buffalo a distant third. Given the above indicators, Pittsburgh possesses the greatest human capital, and Buffalo has the least. The next section examines the relative importance o f blue- collar and professional labor.

3. Decline in Importance o f Blue-Collar Work and Increase in Importance o f