New study finds fastest-growing cities not the most prosperous

Jul 19, 2012

As communities seek new ways to emerge from the recession, many may look to growing their population as a strategy. However, the belief that population growth will bring jobs and economic prosperity for local residents is a myth. These findings are published in a new study in the latest issue of Economic Development Quarterly.

"Growth may be associated with economic development success; however, it is not the cause of that success," wrote study author Eben Fodor.

Fodor examined the relationship between growth and in the 100 largest U.S. metropolitan areas from 2000 to 2009 to determine whether certain benefits commonly attributed to growth are supported by statistical data. He found that the slowest-growing had lower , lower , higher income levels, and were less impacted by the recession than the fastest-growing areas. In fact, in 2009, local residents of slower-growing areas averaged $8,455 more per capita in personal income than those of the fastest-growing areas.

"The successful economic development program is typically the one that creates new jobs," Fodor wrote. "The new jobs tend to stimulate as people move into the area seeking to take advantage of the new employment opportunities … But growth is not creating employment opportunities. Instead it is reducing them as newcomers fill job openings."

This new study used information taken from the U.S. Census to study 100 of the largest metro areas, representing 66% of the total U.S. population. It concluded with a comparison of the 25 slowest-growing metro areas with the 25 fastest growing from 2000 to 2009. The slowest growing areas were located in 13 different states, including Connecticut, New York, and Ohio while the fastest-growing areas came from 12 different states, dominated by California, Florida, and Texas.

Explore further: Launching a new brand: Is partnering with a popular brand a good idea?

More information: "Relationship between Growth and Prosperity in 100 Largest U.S. Metropolitan Areas" in Economic Development Quarterly edq.sagepub.com/

add to favorites email to friend print save as pdf

Related Stories

Recommended for you

Professor analyzes role of trade sanctions against Iran

9 hours ago

Israeli Prime Minister Benjamin Netanyahu addressed Congress on Tuesday as about 50 Democratic lawmakers threatened to boycott the address, offering the latest and one of the most clear microcosms of the debate about Iran's ...

Think twice about investing in own company

12 hours ago

Employees whose retirement plan is invested in stock of the company where they work do not pull out money as the firms approach financial distress, a recently released, but yet to be published paper, co-authored ...

When performance comparisons spur risky behavior

Mar 02, 2015

When you're at work, there are two types of people you compete with: People with similar responsibilities at your own company, and rivals with similar duties at other companies. How do those different flavors ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.