State Policies to Promote Shared Prosperity in Cities

Brief

State Policies to Promote Shared Prosperity in Cities

Abstract

New technologies, economic shifts, changing demographics and continued racial biases are widening income inequalities and racial disparities in cities across the United States. As a result, economic opportunities are increasingly concentrated among a small share of the population and in a limited number of places. To combat increased economic and geographic inequality within cities, local leaders are launching new efforts to enable women, people of color and other underrepresented groups to contribute to and benefit from economic growth. But local leaders cannot address these issues on their own. In an era of federal withdrawal from investments in communities and the social safety net, state and local leaders must work together to advance shared prosperity. In this series of briefs, we articulate why the issues of affordable housing, job growth and upskilling workers matter to statewide shared prosperity. In addition, we explore how state and local governments can forge more effective partnerships, and we profile states that are leading the way.

In this framing brief, we discuss how states bring a unique set of assets and capacities to new partnerships with cities, including three key roles they can play to advance shared prosperity: financial support and incentives; legal authority to act; and enabling cooperation and addressing exclusion.

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