Chicago Fed’s Testa analyzes Indiana, offers universal insights October 5, 2006Posted by Tom in Community, Economic Development, Education, Research, Workforce.
Economist Bill Testa from the Chicago Federal Reserve offers a cross-section of the data that he collected in anticipation of his participation in an economic development conference in Indianapolis. His main conclusions: Indiana is losing its manufacturing base, and its wages are lower than other manufacturing states. Here’s what he thinks about that:
How can Indiana improve its living standards? In our market-oriented economy, higher wages and earnings are currently being paid to those with higher skills and education. For this reason, investment in education and work force training are one important part in achieving higher income for Hoosiers.
In addition to higher skills, there must be job opportunities available for those enhanced skills and training. Sometimes, such local job opportunities do emerge as new firms and capital investment migrate into states in search of favorable work force skills and education. However, in other instances, skilled workers move out of state in search of greater opportunity. To forestall this loss of skilled workers, Indiana and other states are pursuing not only work force training and education, but also local technology transfer from technical universities along with the encouragement of entrepreneurial ventures.
Nice summary of trends in the Hoosier state – and other “low wage states.”