A Middle Model of Economic Development? Revisiting the Economic Geography of Middle-Wage Occupations in the United States

Ben Armstrong and Elisabeth B. Reynolds

Economic Development Quarterly, 2023, vol. 37, issue 4, 349-362

Abstract: High-wage regions have frequently been models for economic development policy. However, these places have also been more likely to experience a “hollowing out†of the middle of the labor market, whereby college-educated residents experience high-wage growth, while residents without a college degree do not. This paper studies regions where—in contrast to hollowing out—the share of middle-wage jobs has grown since 1980. Its aim is to understand how—if at all—the characteristics of these regions could suggest a model of economic development that prioritizes opportunities for noncollege graduates. The authors find that regions with a growing share of middle-wage jobs have been associated with higher levels of upward mobility and wage growth for workers without a college degree. These places, such as Wausau, Wisconsin, and Manhattan, Kansas, are associated with higher local school performance and have experienced comparatively high growth in production jobs.

Keywords: inequality; labor market polarization; inclusive economic development; social capital (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ecdequ:v:37:y:2023:i:4:p:349-362

DOI: 10.1177/08912424231164387

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