The Role of Labor Mobility in a National Urban Policy

Abstract

Abstract Many academic economists have called in vain for efforts to foster the migration of poor people from distressed communities to places with stronger economies. This article reexamines the economic case for such mobility policies. The evidence shows that (1) significant disparities exist among communities in the economic opportunities they provide minorities and the poor; (2) these differences affect the success of federal employment and training programs; and (3) significant economic returns do result from migration by minorities and the poorly educated to urban communities with stronger economies. Further, a number of current federal programs impede the mobility of disadvantaged persons, including welfare programs, federal housing subsidies for low-income families, and the federal tax code. The conclusion is that the federal government should eliminate needless barriers to the mobility of disadvantaged persons. Policies that should be adopted include provisions of geographically portable welfare benefits, on a temporary basis; geographically portable housing assistance; a tax credit (rather than a deduction) for moving costs associated with employment; and a national job bank.