Workers

 Economic Policy Institute - For at least the last 40 years, pay and job quality for workers across the South has been inferior compared to other regions—thanks to the racist and anti-worker Southern economic development model...

Workers across the South are much less likely than their counterparts in other regions to have access to these kinds of jobs. The data suggest that a key reason for the disadvantages Southern workers face is the Southern economic development model prevailing across the region. The Southern economic development model is characterized by low wages, limited regulations on businesses, a regressive tax system, subsidies that funnel tax dollars to the wealthy and corporations, a weak safety net, and staunchly anti-union policies and practices (Childers 2024a).

Proponents of the Southern economic development model argue that it will create good jobs (Danney 2021; Ivey 2024). They claim that adopting most or all components of the model creates a business-friendly environment with low taxes, which will attract businesses (including major corporations) that will in turn provide an abundance of jobs. In theory, if jobs were abundant and/or growing faster than the population, competition among employers to attract and retain workers would lead them to raise pay, improve benefits (including health insurance and pensions), and find other ways to make these jobs more attractive. However, Childers (2023; 2024b) finds that job growth across the South has not kept pace with growth in the working-age population. Further, she finds that the share of the prime-working-age population that was employed—the prime-age employment-to-population ratio—was lower across the South than in any other region of the country (Childers 2024b). This reflects many factors, including a lack of access to affordable childcare and reliable public transportation that helps workers get and keep jobs. It also reflects the fact that Southern states incarcerate their residents at very high rates, which translate into large numbers of Southerners with criminal histories. Finally, many available jobs are unattractive and do not provide workers with the income and benefits needed to support themselves or their families.