Rebuilding Communities Job Subsidies

Worker cleaning up park


Poverty remains a persistent problem in many areas in the United States. Existing place-based policies—especially enterprise zones—have generally failed to provide benefits to the least advantaged. Drawing on lessons from the often-negative findings on effects of past place-based policies, but preserving the potential advantage of policies that try to improve economic outcomes in specific areas, I propose a new place-based policy—Rebuilding Communities Job Subsidies, or RCJS—to encourage job and income growth in areas of economic disadvantage. RCJS targets neighborhoods classified as extremely poor, and low-income workers in those neighborhoods, with a period of fully subsidized jobs to build skills and improve and revitalize areas of extreme poverty, to be followed by partially subsidized private sector jobs.