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Title: Falling Behind How Ohio Continues to Lose its Place in the U.S. Economy

Citation Type: Miscellaneous

Publication Year: 2020

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Abstract: 1. Sowing the Seeds of Long Run Economic Decline When transportation costs were the dominant economic force determining suc- cess or failure, Ohio made historic investments in canals and rail to lower trans- portation costs and quickly pivoted from agriculture to manufacturing. Ohio rose to the 3rd most populous state in the nation with the first inland boomtowns. Ohio struggled to manage its sudden growth and quality of life in cities began to decline. Public health continues to be an issue for Ohio today. Every metric of success suggests Ohio continues to fall behind. 2. We Face More, not Fewer Challenges in the Decades to Come As transportation costs continued their dramatic decline, industry dispersed from Ohio to the south and eventually around the globe. Both trade and increasing productivity in manufacturing through automation have left Ohio failing to keep pace with the rest of the nation as it has failed to diversify its economy. 3. The Increasing Importance of Quality of Life Job growth increasingly goes to non-footloose jobs (not to footloose export sector jobs) that produce local goods and services, such as health care, education, recreation – goods and services that improve quality of life. Ohio has failed to make meaningful improvements in the amenities that increase quality of life. Quality of life (not the quality of the business environment) is increasingly associated with employment and population growth attracting high-skill workers. 4. Educated Workers are the Engine of Economic Growth Educational attainment may now be the single most important predictor of economic success. Only the most educated workers have experienced net job growth and real wage growth. The dominant economic force in the U.S. economy is a skilled workforce. Highly educated workers are more productive, more innovative, and better able to adapt to the changing economic headwinds. Ohio cannot succeed without a highly skilled, well-educated workforce. 5. Economic Development Policies for Ohio Ohio should focus on developing a skilled workforce by investing in education from early childhood education through higher education instead of focusing on ineffective sector-based economic development incentives designed to attract large manufacturing plants. To keep this skilled workforce (and attract new educated workers), Ohio must focus more on developing its comparative advantage in the amenities that enhance quality of life through local small businesses, increasing industry diversity, while lowering the tax burden on households.

Url: https://uakron.edu/economics/docs/Falling-Behind-December.pdf

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Authors: Weinstein, Amanda; Hicks, Michael; Wornell, Emily

Publisher: The University of Akron

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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