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Chains and Ladders: Exploring the Opportunities for Workforce Development and Poverty Reduction in the Hospital Sector

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  • Marla Nelson

    (University of New Orleans, New Orleans, LA, USA, mnelson@uno.edu)

  • Laura Wolf-Powers

    (University of Pennsylvania, Philadelphia, PA, USA)

Abstract

In this article, the authors investigate the potential of hospitals to offer low- and semiskilled workers employment and advancement options.This study uses the job chains approach to measuring economic development impacts devised by Persky, Felsenstein, and Carlson to compare hospitals with three other industries highly concentrated in central cities and examines the practical challenges facing workforce development professionals. The findings suggest that growth in hospital employment has the potential to outstrip the impact of growth in accommodations, legal services, and securities and commodities on the well-being of low-income workers and should prompt economic development practitioners to take the sector more seriously as a locus for attention and investment. To maximize welfare gain and distributional equity, economic development policy makers must accompany investments in health care—based economic development both with strategies to promote skills attainment and credentialing among low-paid health care workers and with formal strategies to facilitate upward movement.

Suggested Citation

  • Marla Nelson & Laura Wolf-Powers, 2010. "Chains and Ladders: Exploring the Opportunities for Workforce Development and Poverty Reduction in the Hospital Sector," Economic Development Quarterly, , vol. 24(1), pages 33-44, February.
    • Handle: RePEc:sae:ecdequ:v:24:y:2010:i:1:p:33-44
    DOI: 10.1177/0891242409347721
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    References listed on IDEAS

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    1. Marla Nelson, 2009. "Are Hospitals an Export Industry?," Economic Development Quarterly, , vol. 23(3), pages 242-253, August.
    2. Timothy J. Bartik & George Erickcek, 2007. "Higher Education, the Health Care Industry, and Metropolitan Regional Economic Development: What Can “Eds & Meds” Do for the Economic Fortunes of a Metro Area’s Residents?," Upjohn Working Papers 08-140, W.E. Upjohn Institute for Employment Research.
    3. Daniel Felsenstein & Joseph Persky, 1999. "When is a Cost Really a Benefit? Local Welfare Effects and Employment Creation in the Evaluation of Economic Development Programs," Economic Development Quarterly, , vol. 13(1), pages 46-54, February.
    4. Joseph Persky & Daniel Felsenstein & Virginia Carlson, 2004. "Does "Trickle Down" Work? Economic Development and Job Chains in Local Labor Markets," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number dtdw.
    5. Timothy J. Bartik, 1997. "Short-Term Employment Persistence for Welfare Recipients: The "Effects" of Wages, Industry, Occupation and Firm," Upjohn Working Papers 97-46, W.E. Upjohn Institute for Employment Research.
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    Cited by:

    1. Ribas, Vanesa & Dill, Janette S. & Cohen, Philip N., 2012. "Mobility for care workers: Job changes and wages for nurse aides," Social Science & Medicine, Elsevier, vol. 75(12), pages 2183-2190.

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