Sie befinden Sich nicht im Netzwerk der Universität Paderborn. Der Zugriff auf elektronische Ressourcen ist gegebenenfalls nur via VPN oder Shibboleth (DFN-AAI) möglich. mehr Informationen...
Jobs for the Heartland: Place-Based Policies in 21st-Century America
Ist Teil von
Brookings papers on economic activity, 2018-04, Vol.2018 (1), p.151-232
Ort / Verlag
Washington: BROOKINGS INSTITUTION PRESS
Erscheinungsjahr
2018
Link zum Volltext
Quelle
Electronic Journals Library
Beschreibungen/Notizen
The economic convergence of U.S. regions has slowed greatly, and rates of long-term nonemployment have even been diverging. Simultaneously, the rate of nonemployment for working age men has nearly tripled over the last 50 years, generating a social problem that is disproportionately centered in the eastern parts of the American heartland. Should more permanent economic divisions across space lead U.S. economists to rethink their traditional skepticism about place-based policies? We document that increases in labor demand appear to have greater effects on employment in areas where not working has been historically high, suggesting that subsidizing employment in such places could reduce the rate of not working. Proemployment policies, such as a ramped-up Earned Income Tax Credit, that are targeted toward regions with more elastic employment responses, however financed, could plausibly reduce suffering and materially improve economic performance.