NEW YORK TIMES: …“One of the challenges that faces eastern Kentucky is the remoteness of the area,” said James P. Ziliak, the director of the Center for Poverty Research at the University of Kentucky. “It’s difficult to get to a lot of places. The communities are small, and they’re spread apart, so you lose that synergy that you want to spark development a lot of times.” Even with additional government subsidies, would businesses really want to move there? “It’s this chicken-and-egg problem,” Ziliak said. “My view is that firms will never locate into a community with an unskilled labor force, unless the only labor they need is unskilled. And there has been a historic lack of investment in human capital in these areas.”
The queasy answer that economists come to is that it would be better to help the people than the place — in some cases, helping people leave the place. Generally, the wealthier and better educated the family, the more mobile they are. It takes resources to pack up all your things, sign a new lease, pay for gas or a flight and go. That might help explain why more Americans aren’t flocking from places with high unemployment rates to places with low ones, even if those places are surprisingly close together. College graduates, for instance, are several times as responsive to differences in labor demand as those who completed only high school, according to a study in The Journal of Human Resources.
But government policy based less on place and more on people might help ameliorate that trend. “Let’s say I was a hardworking person who lost my job in Harlan, Ky. — the ideal place, really, to go is Williston, N.D.,” Senator Paul said. “People need to be mobile to go there. Some government programs prevent mobility or discourage mobility.” And none encourage it: There are scant federal resources to help the unemployed or the poor in rural areas move to a job or even just a better neighborhood. (Imagine Senator Mitch McConnell running for re-election on the campaign slogan: “I’ll get you out of this moribund area and up to the wilderness of North Dakota!”)… (more)
