In this issue: Where creativity clusters, the global gender gap, the benefits of urban green spaces for well-being and equality, and more on the debate about whether small businesses or large companies are better investments for communities.  No Images? Click here
 
   
Hot air balloons against a blue sky

How old will you be when the global gender gap closes?

With International Women’s Day happening earlier this week, it seems fitting to share a few recent studies on gender inequality and the value of women's work around the world.

The World Economic Forum (WEF) released the 10th edition of its Global Gender Gap Report late last year. The report tracks global gender-based disparities over time in four areas: Economic Participation and Opportunity, Educational Attainment, Health and Survival, and Political Empowerment. Of the 145 countries included in the 2015 edition, Canada ranked 30th and the United States 28th, compared to 14th and 23rd respectively out of 115 countries in 2006.

A decade of data offers some fascinating insights into the progress, or lack thereof, in closing these gaps. According to the report, the global economic gap has closed just 3% in the past ten years. At that rate of progress, it will take 118 years to close completely. Check out the Gender Gap Calculator to find out how old you’ll be at that point and to get a summary of your country’s gender gaps and progress towards closing them. The report also includes analysis of trends, provides an economic case for gender equality, and shares implications for business practices and public policy. The WEF argues that women have an important role to play in the workforce as we look for ways to navigate the Fourth Industrial Revolution.

For those looking for more on how to accelerate gender parity, EY’s Who Holds the Key to Closing the Skills Gap?  report explores five actions that could help to foster equality and close global skills gaps. Three of these actions are aligned with different stages in women’s careers (entrant, express, and experienced) and two are aligned with key forces that influence women’s careers (digital technology and the media). A new report from Oxfam Canada and the Canadian Centre for Policy Alternatives also provides policy recommendations for building more equitable economic and political systems.

 
Tablet and keyboard on a desk

A fresh look at creativity, clusters, and competitiveness

Richard Florida and his colleagues at the Martin Prosperity Institute recently released an interesting study that blends Michael Porter’s industrial cluster theory and Florida’s research on creative and routine occupations to explore their impact on economic development.

In Creativity, Clusters and the Competitive Advantage of Cities, the authors identify four major industrial-occupational categories: creative occupations in traded industries (creative-in-traded), creative occupations in local industries (creative-in-local), routine occupations in traded industries (routine-in-traded), and routine occupations in local industries (routine-in-local). The study examines the shares of American employment in each category and analyzes their relationships with regional economic development indicators in more than 250 metro areas in the United States.

The study finds that employment in the creative-in-traded category is positively associated with higher levels of innovation and higher levels of economic output per capita. Metro areas with higher shares of this kind of employment see higher overall incomes and wages, with creative-in-traded industries having the highest wages of the four categories. According to the study, 46% of workers in traded industries, which compete based on creativity and innovation, are in creative jobs. This category tends to be clustered along the East and West Coasts of the US. It’s not all good news for metro areas with higher shares of creative-in-traded employment, though. There is a significant positive association between shares of creative-in-traded jobs and higher inequality, while the share of routine-in-traded jobs is negatively associated with inequality.

On the other end of the spectrum, routine-in-traded (largely in manufacturing) and routine-in-local employment is negatively associated with wages and innovation, and routine-in-local employment is negatively associated with economic output per capita. To counter this, the report argues that industry and governments must work to make routine jobs into more creative ones in order to increase competitiveness and economic sustainability.

 
 
 

Survey invitation

Please take a few minutes to complete a survey on the establishment of a pan-Canadian, grassroots forum that will build workforce development capacity and effectiveness at the local, regional, provincial and national levels. A Canadian Workforce Development Forum would connect people and jobs in a way that strengthens economic competitiveness and quality of life for all communities. 

 
Eddie Friel

Company Corner

Harry Shnider joins the MDB Insight team

The MDB Insight team recently welcomed Harry Shnider as a Senior Consultant. Harry brings with him a background in both policy and development planning. Based in Alberta, he has more than 20 years of private and public sector experience.

Prior to joining MDB Insight, Harry was a senior planner with an urban/rural municipality in the Edmonton region. His career has taken him to many interesting parts of Canada, including three years in the service of the Government of the Northwest Territories. Living in Rankin Inlet and Yellowknife, he was able to provide project management services to smaller regional communities and helped communities build capacity to manage lands transferred to their control by the Nunavut Land Claim.

A big-picture thinker, Harry enjoys the wider frame of reference that MDB Insight’s strategic planning provides to clients. He thrives on complex projects, and enjoys working with diverse stakeholders, including government agencies, community associations, and interest groups. His strength lies in explaining technical concepts to the public in plain language.

Harry was born and raised in Flin Flon, Manitoba. He holds a BA in Political Science from the University of Saskatchewan and a BES in Urban and Regional Planning from the University of Waterloo.

 
Piggy bank wearing glasses

Which is a better investment for your community: Startups or large companies?

Conventional wisdom has it that large corporations are a huge boost to a local economy, generating new job opportunities and all the knock-on spending effects that come with them. In an effort to attract them, cities often offer large corporations millions of dollars in subsidies and tax breaks. While big corporations play an important role for local economies, new research suggests that startups and small businesses could give them a run for their money.

The recent Center on Budget and Policy Priorities (CBPP) report, State Job Creation Strategies Often Off Base, makes the case that most new job creation during periods of healthy economic growth comes from startups, entrepreneurs, young and fast-growing companies, and the expansion of employment at existing companies within a state. Startups in particular were identified as being good at creating new jobs (even after taking into account the fact that half of all startups fail in the first five years).

While the CBPP research found that “older” firms actually tended to have annual net losses of jobs, the surviving startup businesses collectively created 2.4 million new jobs by the end of the five year study period. Jobs that moved into one state from another (usually representing larger corporations) generally represented only 1% to 4% of total job creation each year.

These findings take on a different meaning when coupled with a study by the organization Good Jobs First (an organization promoting corporate and government accountability in economic development), called Shortchanging Small Business: How Big Businesses Dominate State Economic Development Incentives. This research found that billions of state and local economic incentive dollars aimed at small businesses were largely (80%-96% of funds) captured by large, well-established, and well-connected corporations.

The majority of small businesses already recognize this and aren’t asking for tax breaks and subsidies. Instead, small businesses often prefer public investment into public goods that benefit all employers like job training, education, and transportation infrastructure that will help new businesses survive the first few years.

 
 
 
 
Workers taking a break in a courtyard

Is your community leveraging equigenic environments?

Could green spaces close gaps in health between people of different incomes? According to a researcher from the University of Glasgow, that may be the case. A study of 34 European nations found that the gap in mental well-being between socioeconomic groups was 40% narrower among respondents with good access to green/recreational areas compared with those with poorer access. While it’s certainly not without flaws, the study raises some interesting questions about equigenic environments (places that can reduce health inequalities).  

Along similar lines, researchers at the European Centre for Environment and Human Health at the University of Exeter Medical School found that moving to a greener urban area can lead to lasting positive changes in mental well-being. Another University of Exeter study of more than 10,000 people found that, on average, respondents reported higher levels of well-being and lower levels of mental distress when living in greener urban areas. Across the Atlantic, a University of Wisconsin study of more than 2,500 residents of 229 cities and towns found that respondents claimed to be happier, on average, when more green space is located in their neighborhood.

As more people around the world move to cities, and more cities compete make themselves attractive to talented workers, urban green spaces are an important part of making sure cities are healthier, happier and more equal. There are economic and business benefits to green spaces too. For planners, as well as those involved in economic or community development, there is a wealth of information on designing cities that make the most of green spaces.

 
 
 
 

Resource Review

12 Strategies for Re-Energizing Your Community

Communities across Canada and the United States are facing increasing competition when it comes to attracting talent and investment. Economic developers, and others involved in creating vibrant communities, need a broad range of tools to help their communities thrive now and in the future. Municipal World’s 12 Strategies for Re-Energizing Your Community fits the bill, bringing together articles from 12 experts on a variety of community revitalization topics in an easy-to-read collection. 

While short compared to many of the books reviewed here in the past, 12 Strategies packs a punch in terms of the range of topics covered. From how Stockholm’s “new towns” provide models of sustainable communities for urban planners to examples of how cities like Boston and Rio de Janeiro are using data to tackle the challenges of urbanization. Whether you’re looking for the expected (leveraging local food economies or designing energy efficient, sustainable communities) or something off the beaten path (how to use garden tourism to attract people to your community), you’ll find something to inspire you. MDB Insight’s own Brock Dickinson explores how Maker culture, fab labs and Maker spaces can spur economic growth (check out the special Maker edition of TINAN for a primer on these topics). 

If you’re looking for some new ideas, or new perspectives on familiar ones, 12 Strategies for Re-Energizing Your Community is worth a look. The case studies and best practices shared might just help you to tackle local challenges from a different angle or identify new opportunities for your community.

 
 
 
 

Out & About

March

Trudy Parsons will be attending the National Association of Workforce Boards Forum taking place in Washington D.C. from March 12th-15th. Brock Dickinson will be participating in a panel on “Managing Systems Change” at the Forum on March 13th. 

Trudy Parsons will be speaking at the 2016 South Okanagan Skilled Labour Strategy Summit in Penticton, BC, on March 18th. 

April

Harry Shnider and Paul Blais will be attending the 2016 Economic Developers Alberta Conference in Kananaskis from April 6th to 8th.

Brock Dickinson will be the guest speaker at the County of Brant “All Staff” event on April 22nd in Paris, ON. 

May

Trudy Parsons and Brock Dickinson will be teaching at the University of Waterloo's Fundamentals of Community ​Economic Development (Year One) program taking place in Waterloo, ON, from May 1st to 6th. 

Brock Dickinson will be teaching at the University of Waterloo's Social Media for Economic Developers Seminar taking place in Stratford, ON, and online from May 26th to 27th. 

Paul Blais will be speaking at the Saskatchewan Economic Development Association Conference taking place in Swift Current from May 31st to June 2nd. 

 
 
 
MDB Insight Employment Development Map January 2016

Employment Development Index

January 2016

Our Employment Development Index is a visual representation of changes in regional employment figures over time. Visit the Employment Development Index archives for previous editions.

 
 
 

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