Good piece by @rodrikdani on creating more good jobs. Key points: need to work on both labor supply side & demand side; services beat subsidies, in particular need to do sectoral training & services to improve business inputs; these services need to be coordinated at local level.
I participated in a seminar chaired by @rodrikdani on good jobs by @InequalityHKS . I think video will be posted soon. Here is a link to my 7-minute speech draft (pdf listed under additional files) and the powerpoints (the download button):research.upjohn.org/presentations/…
My basic point: we can do a lot to address lack of good jobs with programs that target the most distressed local labor markets, comprising 30% of U.S. population, and most distressed neighborhoods, comprising about 10% of U.S. population.
The most distressed local labor markets are shown in this map. As can be seen, this includes distressed cities such as Detroit, Flint, many inland metros in California such as Fresno, upstate NY. But also most of rural south and southwest and Appalachia. Politically red & blue Image
On local labor market level, although we can do tax incentives, it is more cost-effective to increase labor demand/induce job creation via services that enhance business inputs, such as: customized job training; business advice programs such as manufacturing extension;
infrastructure; land development programs such as brownfield redevelopment. This chart compares present value costs per job created of incentives versus these services: Image
But we also need to link folks in distressed neighborhood with jobs. This can be done by locating workforce development programs in these neighborhoods at trusted nbhd institutions (churches), by having "success coaches" to help nbhd residents retain jobs, &
by supporting nbhd residents with childcare services and help with transportation (mass transit, help in getting loans to buy reliable used cars or get cars repaired).
For more on neighborhood employment hubs & succcess coaches for job retention, see the First Annual Report of the @UpjohnInstitute place-based research initiative, which I co-chair w/ @mmilleradams & @BHershbein : upjohn.org/research-highl…
A good recent theory/conceputa analysis of why labor market policies must get very involved with employers is provided by @aaronsojourner & @snaidunl in @rooseveltinst piece. rooseveltinstitute.org/publications/e…
What would it cost to address good job availability at local labor market level and neighborhood level? In a recent policy paper, I outline a program to do so at an annual cost of about $19 billion, done annually for 10 years. research.upjohn.org/up_policypaper…
This broadens a policy proposal that I made in September @BrookingsMetro . (My thanks to @MarkMuro1 & @amy_liuw for feedback). My policy paper broadens this proposal by adding additional local labor markets but still directing more $ to most distressed.brookings.edu/research/helpi…
My broader proposal based on conversations with Congressional staff to address additional needs in moderately distressed local labor markets, as well as in distressed neighborhoods, whose residents face job challenges even if local area is booming. research.upjohn.org/up_policypaper…
The broader program has historical precedents. The most distressed areas receive per capita aid similar to Tennessee Valley Authority. The moderately distressed areas get aid similar to Appalachian Regional Commission. Nbhd aid levels similar to Empowerment Zones.
As @rodrikdani points out, Biden has promised to address good jobs via higher min wage & promoting unionization, and also through tax incentives. But altho these all can work, a federal program to spur good job creation & access in distressed local areas & nbhds would help.

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More from @TimBartik

11 Dec
More specifically, the blog post fails to seriously consider the ethics of distributing vaccines by WTP, or the negative effects on public trust if an untested vaccine proved disastrous.
Now, FDA might have approved more rapid albeit imperfect tests, and considered challenge trials. And govt should have reserved more doses. But faster solutions do not require throwing out commonsense ethics & standards.
What does "thinking like an economist" mean? Some thing it means thinking only in terms of economic efficiency, narrowly defined. But, for ex., Keynes had a broader definition. In his obituary for Alfred Marshall, he stated the following:
Read 5 tweets
10 Dec
I'd like to reup the announcement that my employer, the @UpjohnInstitute , is hiring another senior researcher, to do research related to U.S. labor markets. Here is a link to the job listing: upjohn.org/sites/default/…
For this position, we are looking to diversify our research group by hiring a senior researcher who is outside of economics, preferably someone who has expertise in qualitative research, mixed methods, or survey research.
I want to highlight one aspect of the @UpjohnInstitute that is not always understood: Most of our research is supported by our endowment, which gives researchers the freedom to develop their own research agenda within the Institute's broad mission.
Read 4 tweets
10 Dec
My chapter on improving local economic development policies is published today by @econstrategygrp . This book is available for free download or you can request a free hard copy. #SecuringOurEconomicFuture economicstrategygroup.org/publication/se…
The book has 3 sections, each with several chapters. The 3 areas are: trends affecting the middle class; issues affecting particular geograpies; & climate change. The "local" section includes a chapter by @davidautor on the changing geography of middle skill jobs.
I have written much about place-based policies. What is distinct about this latest effort? This chapter focuses on backing up statistics w/ stories: narratives of successful local economic development, and successful policies, as well as failures. Stories enrich our understanding
Read 16 tweets
23 Sep
You might ask: WHY do distressed areas tend to stay distressed? Because lack of jobs leads to lower job skills and social problems; out-migration is selective and removes some younger, more skilled workers; distress undermines local tax base, reducing public services
And what is evidence for persistence? As report reviews, between 2000 and 2014-18, correlation in prime-age employment rate in local labor markets is 0.88.
Also, locally-severe recessions are persistent. Study by @BHershbein & @BryanAStuart shows that local areas w/ 5% more job loss than U.S. during recessions have, close to a decade later, an employment rate lower by 2 percentage points. research.upjohn.org/up_workingpape…
Read 5 tweets
23 Sep
My report on helping distressed communities w/ a federal block grant is being released today by @BrookingsMetro . This report provides a plan for how federal policymakers can cost-effectively boost employment rates for residents in distressed areas. (1/N) brookings.edu/research/helpi…
To achieve the ultimate goal of boosting employment rates for residents in distressed communities, the block grant would fund both public services to help create & retain jobs, & services to help unemployed and underemployed residents access those jobs. Both are important. (2/N)
The targeted distressed communities are local labor markets w/low employment rates (employment/ population ratios) for "prime-age" workers (ages 25-54). The targeted areas have a population of about one-sixth of the U.S., & include rural & urban areas throughout the U.S. (3/N)
Read 15 tweets
18 Aug
The belief among BOTH Dems and Repubs that middle-class tax cuts pay for themselves is astonishing.
I guess I do have to wonder whether people interpret this question, which is about LONG-RUN effects on DEFICIT, not revenue, as simply: are middle-class tax cuts "good", which means they must reduce this "bad thing", the deficit?
In other words, I see that this study by @S_Stantcheva includes considerable open-ended exploration of beliefs. I would be interested in asking someone who said "Yes, middle-class tax cuts reduce long-run deficit" about what their reasoning was on that.
Read 4 tweets

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