White Collar Birthplace Essential?
Professor Tufte explained in class, awhile ago, that there are distributional consequences of recessions. Usually workers who have bad or lazy attitudes, social pathologies, are tied to a location, are at the bottom of the income latter, or do not have skills are typically the first to be affected in a recession. The article, “The Jobless Go Back to School and, They Hope, Work” by Amy Merrick and Roger Thurow in the February 5th edition of the Wall Street Journal discusses the unemployment issue in Rockford, Illinois. Rockford is a small town near Chicago, Illinois. The unemployment rate in Rockford is approximately 12.5%, which is well above the Illinois state unemployment of 7.4%, and even higher than the U.S. average of 7.1%. The town is characteristically a manufacturing town, meaning that many of the jobs there are "blue collar." Not surprisingly, there has been little incentive for residents to receive higher education. Only 19% of the residents have a four-year college degree which is much less than the national average of 27%. Would this be the same in a "white collar birthplace?" The burden of the recession is much worse in towns like these, which just goes to show that the location one is born in can determine their future financial situations.
Posted by Gracie at 2/15/2009 07:24:00 PM