Introduction to the Second Special Issue on Inclusive Economic Development: Promoting Inclusive Economic Growth and Development

Abstract

This issue of Economic Development Quarterly continues the special issue focusing on inclusive economic development. The August 2023 issue focused on the impact of the Paycheck Protection Program (PPP). This issue of the journal presents research focused on under-resourced communities; the diffusion of the U.S. manufacturing workforce; economic segregation and inequality on economic performance in metro areas; models of equity and inclusion for daylabor workers; and middle-wage U.S. occupations. In 2019, the Federal Reserve Bank of Boston, The Initiative for a Competitive Inner City, and the W.E. Upjohn Institute for Employment Research partnered to gain a better understanding of the mechanisms and contexts that promote inclusive economic growth and development. Inclusive economic development policies promote equitable, participatory, and sustainable growth and opportunities for all populations. They are focused on reducing economic, financial, physical, and social barriers facing vulnerable populations. Each institution has a long-standing interest in equitable growth, and the time was right as the economy flourished— therewas a tight labormarket, and innovation became necessary to attract and retain both businesses and workers. We set out plans to host a themed conference in Boston and produce a related issue in this journal. Before we released a call for papers, however, the Covid-19 pandemic struck and a whole new context emerged: one that underscored the importance of equity as the economy recovers. The August and November issues of Economic Development Quarterly pivot to the current context by thinking about the current environment in at least three important ways: (1) how we determine which places are most in need of economic development approaches, (2) what new ways of initiating economic development may be fruitful, and (3) how were government efforts aligned with equitable economic development during the pandemic. Taken together, the papers in this special issue providemixed evidenceonwhether economicdevelopment in theUnitedStates has become more or less inclusive over time, especially during the pandemic. Matthew Hall, Howard Wial, and Devon Yee paint a pessimistic picture of the long-term trend in concentrated poverty within metropolitan areas, documenting the increase in the incidence of under-resourced communities over the last four decades. The Richard Florida-Todd Gabe and Nik Theodore papers, while illustrating negative features of current regional economic development and labor market patterns, also point toward institutional innovations that could make economic and workforce development more inclusive. Collectively, the papers in this issue provide important insights into the challenges of designing and implementing policies that can effectively address the needs of small businesses in times of crisis. They also highlight the importance of considering the potential for discrimination and bias in the design and implementation of these policies. Overall, the research in this special issue shows that understanding and promoting inclusive economic development requires a revisit to the standard set of concepts, policies, and practices commonly applied to economic development. To be truly inclusive, economic development programs and policies must avoid exclusionary and discriminatory practices. This can be done by applying concepts like under-resourced communities and the New Urban Crisis and adopting new approaches to workforce development, such as growing the share of middle-wage jobs and improving the quality of jobs. Rapid policy analysis and political pressure, as evidenced in the case of the Paycheck Protection Program, can also ensure