The Potential Impact of the Chattanooga Regional Growth Initiative on the Urban Poor
by Brian Fikkert

Abstract:
The Chattanooga Regional Growth Initiative (CRGI) attempts to use strategic clusters to foster competition, innovation, and economic growth. The following paper examines the impact that such growth would have on job opportunities for the urban poor. Using a state-of-the-art, computerized economic model, we measure the impacts of the CRGI on 819 occupations distributed across 528 economic sectors. We find that growth resulting from the CRGI will create a large number of jobs for unskilled and low-skilled workers at wages that are above the poverty level. Efforts to prepare the poor for such work should focus on "soft skills" training such as writing a resume, interviewing for a job, communicating effectively, being timely, exhibiting attitudes of respect, having a good work ethic, etc. Such training may best be provided by grassroots, community organizations that can provide low-income persons with supportive relationships to address the behavioral, emotional, and social dimensions of work readiness.