How State Governments Can Target Job Opportunities to Distressed Places

Authors

Timothy J. Bartik, W.E. Upjohn Institute for Employment ResearchFollow

Upjohn Author ORCID Identifier

https://orcid.org/0000-0002-6238-8181

Publication Date

6-15-2022

Series

Upjohn Institute Technical Report No. 22-044

DOI

10.17848/tr22-044

Abstract

The United States has two types of “place-based” jobs problems: low employment rates in 1) local labor markets and 2) neighborhoods. The local labor market problem can be dealt with by targeting distressed local labor markets for job creation. The neighborhood problem can be dealt with by targeting distressed neighborhoods with programs to improve residents’ job access. This report describes the magnitude of these place-based jobs problems and reviews research on the most cost-effective programs to address these problems. The report also reviews current state government efforts to target job opportunities to distressed places, pointing out that such targeting is frequently too modest and poorly designed. As an alternative, this report proposes that state governments adopt two targeted block grant programs: a “Local Job Creation” block grant; a “Neighborhood Employment Opportunities” block grant. The costs, benefits, and distributional effects of these block grants are described.

Issue Date

June 2022

Note

Upjohn project #34439

Sponsorship

The Pew Charitable Trusts

Subject Areas

ECONOMIC DEVELOPMENT; Local labor markets; Regional policy and planning; Business and tax incentives