Subsidizing the Low Road: Economic ... - Good Jobs First

The real question, however, in evaluating Baltimore’s economic developmentefforts is whether the city has achieved its goals of creating good jobs and increasingtax revenue to benefit the residents of Baltimore.JobsThe downtown area has definitely seen an increase in jobs. Between 1970 and1995, employment downtown grew by 80%. In fact, all of the city’s net job growthsince the 1970s has been in the downtown area, with the bulk of this in tourismrelatedjobs. 107Baltimore put a greater emphasis on creating jobs than on ensuring that the jobscreated were good quality jobs. Without job quality standards related to pay, benefitsor career mobility, a large majority of tourism jobs are not family-supporting jobs. Thisis especially true in cities like Baltimore, where most tourism jobs are not unionized.Non-unionized tourism jobs are frequently part time and usually lack healthinsurance and other benefits. In Baltimore, typical tourism jobs -- such as waiters,janitors, cashiers, and food service workers -- pay about 46% of the average city wage(see Table 5). All but three of these job categories pay, on average, less than thefederal poverty line for a family of four ($17,650 per year in 2001).On the other hand, unionized tourism jobs are more likely to provide employeeswith family supporting wages and benefits. A recent study by the Working for AmericaInstitute found that unionized hotel employees earn 17% more than those not in unionsand are half as likely as non-unionized employees to work less than 35 hours per week.The study also found that hotel workers in cities with high rates of unionization earn16% more than workers in other parts of the country. 108Many of the jobs created through the corporate center strategy are also poorquality, due to the “barbell” income profile of this sector. There are few occupationalladders or middle-income jobs to bridge the gap between highly paid professionals andthe service workers who support them. 109 In addition, financial service companiesoperate in national, regional and even international markets, so there are few linkagesto small- and medium-sized local firms. 110 Furthermore, many city jobs are held bynon-city residents; in 1990, only of 51% Baltimore’s workers also lived in the city. 111Baltimore had less luck in retaining industrial jobs. Industrial jobs tend to offerhigher wages to blue collar workers than service jobs. Manufacturing workers inBaltimore earned an average of $14.50 in 2001. 112 The city claims to have retained oradded about 40,000 industrial jobs between 1976 and 1986 through its economicdevelopment programs. 113 Data from the Census Bureau, however, indicate that26