Public policy for addressing the low-skills low-wage trap: insights from business case studies in the Birmingham city-region, UK

The idea that some local areas are characterized by a low-skills equilibrium trap is prominent in academic and policy debates in the Global North. Factors shaping this position and associated implications for local economic development are only partially understood. This paper provides new evidence...

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Bibliographic Details
Published in:Regional studies 2021-02, Vol.55 (2), p.333-344
Main Authors: Green, Anne E., Sissons, Paul, Broughton, Kevin, Qamar, Amir
Format: Article
Language:English
Subjects:
business models
Case studies
Decision making
Economic development
economic performance
Employers
Escape
institutional theory
Local economic development
low-skills low-wage trap
Public policy
Skills
wages
Workforce
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Summary:The idea that some local areas are characterized by a low-skills equilibrium trap is prominent in academic and policy debates in the Global North. Factors shaping this position and associated implications for local economic development are only partially understood. This paper provides new evidence examining employers' decision-making around investment and workforce management in the hospitality and retail sectors in the Birmingham city-region of the UK, and their experience of the low-skills low-wage trap. The findings highlight intersecting sectoral and place-based factors in the emergence of, and barriers to escape from, this position. Responses require policy actions at firm, local and national levels.
ISSN:0034-3404
1360-0591
DOI:10.1080/00343404.2020.1802005