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How state entrepreneurial development strategies may make income inequality worse

Abstract

In recent decades many US states have explored new methods of attracting new business and by extension, enhancing employment opportunities. But do these strategies benefit all workers equally? In new research which examines state policies to create an ‘innovation economy’ attractive to business, Sarah Young finds that such policies actually increase inequality between low and high wage earners; a result which is at odds with the desire of many state officials to create a labor market made up of ‘quality’ jobs

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