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Abstract
Spatial factors and location are often missed, but critical, pieces of the puzzle in developing public and private policies that support working families. This paper summarizes factors determining locational decisions of businesses and workers, as well as local economic growth, and suggests how employer needs as well as opportunities for low income workers might be served by successful policies in the areas of housing, transportation, education and workforce development. There are notable differences in the patterns of work and employment within and across metro areas, implying that there is no single strategy or national blueprint that will work everywhere.
Introduction
Why do some areas thrive and others do not? The market, be it real estate or jobs, is "hot" in some cities, while in other cities it seems to have stagnated. Spatial factors and location are often-missed, but critical, pieces of the puzzle in developing public and private policies that support working families. An understanding of these issues, and of the motivations of employers and workers, will inform and improve policies in support of low-income working families. This paper summarizes factors determining locational decisions of businesses and workers, as well as local economic growth, and suggests how employer needs as well as opportunities for low-income workers might be served by successful policies in the areas of housing, transportation, education and workforce development. Key themes include these three:
- Employer and worker choices are interdependent—employers want to locate where there is a supply of qualified workers, and workers want jobs and want to be able to get to those jobs.
- There are notable differences in the patterns of work and employment within and across metropolitan areas, implying that no single strategy or national blueprint will work everywhere.
- A wide range of factors contributes to these different patterns, from geography to infrastructure, from local zoning laws to tax policy, and from government intervention to community activism.
All these factors affect the locational choices made by employers (e.g., to remain or expand in an existing location or move to a new community) and by workers (to live within reasonable commuting distance to employment). As this paper will demonstrate, a wealth of information is available, as well as analytic tools, to further this process. This paper first discusses factors that contribute to successful regional economic development. Subsequent sections address development within specific metropolitan areas and the varying patterns of where low-wage workers live and work.
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Employment Benefits for Workers in the Making Connections Households
Patterns of Employment Location in Six Metropolitan Areas
The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.
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