County Unemployment In Georgia: The Causes And Potential Role For Economic Development Policy
Economic development has been uneven within many states, often resulting in wide geographic disparities in unemployment. Using county-level panel data, this study examines variation in unemployment rates within Georgia to determine the potential role that state and local economic development policy may play in reducing unemployment in underdeveloped areas. Thus, a particular concern of the study is whether metropolitan areas and central cities have different unemployment rates, once other characteristics are accounted for. The findings of the study do not support urban areas, or, alternatively, very rural areas, as inherently having different unemployment rates. Thus, state economic development policy need not focus on enhancing one type of area over the other to reduce the state unemployment rate. However, the findings suggest the need for increasing high school attainment rates, providing affordable day-care, and addressing the high unemployment among African-Americans.
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