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What Should The Federal Government Be Doing About Urban Economic Development?, Timothy J. Bartik Jan 2015

What Should The Federal Government Be Doing About Urban Economic Development?, Timothy J. Bartik

Timothy J. Bartik

The federal government should focus its policies towards economic development on areas in which the federal government has some unique advantages. Federal policy should: (1) discourage financial subsidies to specific large firms by state and local governments; (2) expand the federal role in economic development services in which national action has some special advantages, such as developing information on foreign markets, encouraging large national banks to be more involved in economic development, supporting the development of the "Information Superhighway," and encouraging new technology development; (3) provide modest support for state and local efforts to increase business productivity through technology extension …


Solving The Many Problems With Inner City Jobs, Timothy J. Bartik Jan 2015

Solving The Many Problems With Inner City Jobs, Timothy J. Bartik

Timothy J. Bartik

Inner-city business development is often proposed as a solution to inner-city poverty. However, research evidence suggests that creating new jobs in the inner city is unlikely by itself to significantly increase the employment or earnings of the inner city poor. Public subsidies for inner city business development may be justified by greater environmental, congestion, and fiscal benefits of inner city vs. suburban business location decisions. The research evidence suggests that some boost in inner city business development may be provided by a combination of economic development incentives with enhanced public services. A different set of policies must be used to …


The Revitalization Of Older Industrial Cities: A Review Essay Of Retooling For Growth, Timothy J. Bartik Jan 2015

The Revitalization Of Older Industrial Cities: A Review Essay Of Retooling For Growth, Timothy J. Bartik

Timothy J. Bartik

This review essay debates the policy issues raised by the book Retooling for Growth: Building a 21st Century Economy in America's Older Industrial Areas, edited by Richard M. McGahey and Jennifer S. Vey (Brookings Institution Press, 2008). I argue that the main rationale for adopting policies to revitalize older industrial cities is to improve the per capita earnings of urban residents. Therefore, urban economic development policy should be seen as urban labor market policy. Increasing city residents' earnings requires progress on two fronts: increasing metropolitan labor demand; increasing the quantity and quality of the effective labor supply of city residents …