"The social benefits of job creation are higher in distressed, low-employment places than in places where jobs are plentiful."
What It’s About
Bartik argues that targeted, place-based employment policies deliver significant returns by breaking cycles of unemployment, low wages, and social instability in economically distressed areas.
Upshot
Bartik highlights several key insights:
- People Stay Put: Efforts encouraging migration out of distressed areas fail because most Americans have strong local ties. Migration incentives risk deepening local economic disparities rather than resolving them
- High Returns in Distressed Areas: Job creation in struggling communities significantly raises local employment, improves future earnings prospects, and reduces social problems like crime and substance abuse
- Local Labor Markets Vary Sharply: Employment opportunities differ greatly even within states or counties, demanding localized strategies rather than uniform national programs
Why It Matters
Coastal metro economies have grown faster than anywhere else in the United States in the modern era. Addressing geographic employment disparities is crucial for fostering broad-based economic growth and human flourishing.
Who Wrote It
Timothy J. Bartik is a Senior Economist at the W.E. Upjohn Institute for Employment Research.
