Economic Development for EveryoneCreating employment equity through local policy

Sarah Halvorson-FriedVirginia Tech

Examining policies and practices based on racial equity

Presentation overviewWhy is racial equity important for economic development?

What is going on?

How do we change it?

Why does equity matter to planners?

Why do we want income equality in our communities?

“We all do better when we all do better”

– Senator Paul Wellstone

What is going on?

In labor force Employed Unemployment rate0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00% The Racial Wage Gap: Employment Status by Race in the U.S. (2013)

Population 16 years and over White Black or African American

What causes this disparity?

Spatial mismatch (Kain, 1968) may be part of the problem, but not all.

What causes this disparity?

“We now understand that a number of factors, including racial discrimination, lack of social networks, and poor human capital development, prevent jobseekers from finding work even when jobs are located nearby” (Chapple, 2006, p. 323).

Inequitable policies and practices

- At organizational and government levels - Intentional and unintentional

Inequitable policies and practices

- Inaccessibility (e.g. poor public transit access) - Employment outreach through exclusive networks - Lack of training availability - Discriminatory hiring and retention practices

How do we address this?

Some possibilities

Local employment policies

Specialized incentives

Land use and transportation

Inclusive public programs

Local employment policies - Targeted outreach - Networking opportunities - Internship opportunities - Leading by example - Ban the Box

Specialized incentives

- Entrepreneur incentives and educational programs- Incentives to firms guaranteeing equitable hiring practices

How should we work with employers?

Examining employer motivations can inform effective interventions.

1) Legal obligation 2) Beliefs about fairness and justice 3) Performance augmentation 4) Leadership power

Examining employer motivations can inform effective interventions.

ReferencesChapple, K. (2006). Overcoming mismatch: Beyond dispersal, mobility, and development strategies. Journal of the American Planning Association, 72(3), 322-336.

Dialogue On Race, Montgomery County, VA. (2014). Available at: http://www.dialogueonrace.info/

Emsellem, M., & Rodriguez, M. N. (2015). Advancing a federal fair chance hiring agenda: Background check reforms in over 100 cities, counties, and states pave the way for presidential action. National Employment Law Project. Available at: http://www.nelp.org/content/uploads/2015/01/Report-Federal-Fair-Chance-Hiring-Agenda.pdf

Kain, J. F. (1968). Housing segregation, Negro employment, and metropolitan decentralization. The Quarterly Journal of Economics, 175-197.

Spahr, C. (2014). Milwaukee’s transit-jobs mismatch. State Smart Transportation Initiative. Available at: http://www.ssti.us/2014/01/milwaukees-transit-jobs-mismatch/

U.S. Census Bureau. (2013). Blacksburg-Christiansburg-Radford, VA Metropolitan Statistical Area, S2301 Employment status [Status]. Available at: http://factfinder2.census.gov.