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City productivity and economic opportunity

City productivity and economic opportunity. MAV Smart Urban Futures Conference Paul Donegan Grattan Institute 27 March 2014. Local economic change in Melbourne over the last 20 years Knowledge-intensive work and clustering are central to improving living standards

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City productivity and economic opportunity

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  1. City productivity and economic opportunity MAV Smart Urban Futures Conference Paul Donegan Grattan Institute 27 March 2014

  2. Local economic change in Melbourne over the last 20 years Knowledge-intensive work and clustering are central to improving living standards Housing and transport in Melbourne are impeding labour market functioning and equality of opportunity Overview

  3. Local economic change in Melbourne over the last 20 years Knowledge-intensive work and clustering are central to improving living standards Housing and transport in Melbourne are impeding labour market functioning and equality of opportunity

  4. More people are employed Employment to population ratio, residents aged 25-65, Melbourne, 1991 >80% 75-80% 70-75% 65-70% 60-65% <60% no data Grattan Institute, Productive Cities supplementary maps

  5. More people are employed Employment to population ratio, residents aged 25-65, Melbourne, 1996 >80% 75-80% 70-75% 65-70% 60-65% <60% no data Grattan Institute, Productive Cities supplementary maps

  6. More people are employed Employment to population ratio, residents aged 25-65, Melbourne, 2001 >80% 75-80% 70-75% 65-70% 60-65% <60% no data Grattan Institute, Productive Cities supplementary maps

  7. More people are employed Employment to population ratio, residents aged 25-65, Melbourne, 2006 >80% 75-80% 70-75% 65-70% 60-65% <60% no data Grattan Institute, Productive Cities supplementary maps

  8. More people are employed Employment to population ratio, residents aged 25-65, Melbourne, 2011 >80% 75-80% 70-75% 65-70% 60-65% <60% no data Grattan Institute, Productive Cities supplementary maps

  9. In the last 20 years Melbourne has become richer Median income (in 2011 dollars), residents aged 25-65, Melbourne, 1991 >$70,000 $60-70,000 $50-60,000 $40-50,000 $30-40,000 <$30,000 no data Grattan Institute, Productive Cities supplementary maps

  10. In the last 20 years Melbourne has become richer Median income (in 2011 dollars), residents aged 25-65, Melbourne, 1996 >$70,000 $60-70,000 $50-60,000 $40-50,000 $30-40,000 <$30,000 no data Grattan Institute, Productive Cities supplementary maps

  11. In the last 20 years Melbourne has become richer Median income (in 2011 dollars), residents aged 25-65, Melbourne, 2001 >$70,000 $60-70,000 $50-60,000 $40-50,000 $30-40,000 <$30,000 no data Grattan Institute, Productive Cities supplementary maps

  12. In the last 20 years Melbourne has become richer Median income (in 2011 dollars), residents aged 25-65, Melbourne, 2006 >$70,000 $60-70,000 $50-60,000 $40-50,000 $30-40,000 <$30,000 no data Grattan Institute, Productive Cities supplementary maps

  13. In the last 20 years Melbourne has become richer Median income (in 2011 dollars), residents aged 25-65, Melbourne, 2011 >$70,000 $60-70,000 $50-60,000 $40-50,000 $30-40,000 <$30,000 no data Grattan Institute, Productive Cities supplementary maps

  14. Local economic change in Melbourne over the last 20 years Knowledge-intensive work and clustering are central to improving living standards Housing and transport in Melbourne are impeding labour market functioning and equality of opportunity

  15. Knowledge-intensive activity is central to increasing living standards Managers Cumulative growth in employment by occupation, 1997-2012, Australia Mainly high education Professionals Technicians & trade workers Community & personal service workers Machinery operators & drivers Clerical & admin workers Labourers Mainly low education Sales workers Analysis of ABS data in Grattan Institute, Productive Cities

  16. Knowledge-intensive businesses cluster near each other Economic activity by Statistical Area Level 2 (SA2), Melbourne, 2011-12 $38.8b $11b $8b $6b $4b $3b $2.5b $2b $1.5b $1b $0.5b $0.2b $0 Grattan Institute analysis of ABS data.

  17. Clustering supports productivity Labour productivity (economic activity per working hour) by SA2, Melbourne, 2011-12 $100 $90 $80 $75 $70 $65 $60 $55 $50 $45 $40 $0 Grattan Institute analysis of ABS data.

  18. Local economic change in Melbourne over the last 20 years Knowledge-intensive work and clustering are central to improving living standards Housing and transport in Melbourne are impeding labour market functioning and equality of opportunity

  19. Access to employment is lower in outer Melbourne than inner and middle suburbs Proportion of metropolitan jobs that can be reached in 45 minutes by car, %, Melbourne, 2011 SGS Economics and Planning using Strategic Travel Model supplied by the Victorian Department of Transport, Planning and Local Infrastructure, discussed in Grattan Institute, Productive Cities

  20. …especially if travelling by car isn’t an option Proportion of metropolitan jobs that can be reached in 60 minutes on public transport, %, Melbourne, 2011 SGS Economics and Planning using Strategic Travel Model supplied by the Victorian Department of Transport, Planning and Local Infrastructure, discussed in Grattan Institute, Productive Cities

  21. Women living further from job clusters are especially affected Female workforce participation by neighbourhood socio-economic status, 1976-2011 (Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra mean) 2011 Employment to population ratio 1991 1976 Neighbourhoods by socio-economic status (deciles)

  22. Housing and transport are central to a fair and productive city into the future • Housing near employment clusters • Planning • Land supply • Tax • Good transport links to employment clusters • Timely and efficient investment • Better use of existing transport assets

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