Publication: Inclusive Economic Growth in America’s Cities: What’s the Playbook and the Score?
Loading...
Published
2015-06
ISSN
Date
2015-07-17
Editor(s)
Abstract
This paper defines economic inclusion as the ability of all people, including the disadvantaged, to share in economic gains, that is, the conditions that allow for broadly shared prosperity. Beyond the “right” to access consumption in cities, and beyond relatively standardized safety net policies that support economic security, inclusion demands intentional, flexible, context-appropriate strategies aimed at shifting the dynamics of local land and labor markets, public education, and other institutions. The paper analyzes the varied contexts for designing and supporting such strategies in a rapidly changing society, where urban regions have long been critical to incorporating a broad cross-section of people, including immigrant newcomers. Four dimensions are particularly crucial: an urban area’s level of economic growth, the quality of its jobs, its demographic profile, and its geography of opportunity (degree and form of spatial inequality). Economic inclusion is particularly urgent in America’s strongest local markets, which are pricing out the lowest-wage workers and showing a disturbing tendency to import rather than grow the talent needed for the emerging, innovation-driven economy. But weak-market regions face important challenges—and a range of options for leveraging demographic and other changes—as well. And for now, in all types of cities, innovative and promising strategies remain small in scale, in part because they are competing for support with entrenched, underperforming systems.
Link to Data Set
Citation
“de Souza Briggs, Xavier; Pendall, Rolf; Rubin, Victor. 2015. Inclusive Economic Growth in America’s Cities: What’s the Playbook and the Score?. Policy Research Working Paper;No. 7322. © World Bank. http://hdl.handle.net/10986/22199 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Publication Climate and Social Sustainability in Fragility, Conflict, and Violence Contexts(Washington, DC: World Bank, 2026-01-07)Climate change is widely recognized as a driver of violent conflict, but its broader social effects remain less understood. Ignoring these dimensions risks a vicious cycle where climate policies might undermine socially just adaptation. Evidence is still limited on how climate shocks influence political participation, trust, or migration. This paper helps fill that gap by examining links between climate change, conflict, and social sustainability, with a focus on inclusion, resilience, cohesion, and legitimacy. Using secondary data from 2019–24, the study applies simple correlation-based methods to test three hypotheses on the nature, severity, and composition of these associations. The analysis combines multiple climate impact measures, new conflict classifications, recent social sustainability frameworks, and controls for population and geography. The results reveal strong correlations—not causation—between climate events and contexts of fragility, conflict, and violence. Climate impacts are most pronounced in both national and subnational conflict settings. The study also finds robust links between fragility, conflict, and violence and low levels of social sustainability, reflecting its role as both a driver and consequence of conflict. Some dimensions—such as violent events and insecurity—appear weaker in areas most affected by climate shocks. Two of the hypotheses are supported, and one remains inconclusive.Publication The Macroeconomic Implications of Climate Change Impacts and Adaptation Options(Washington, DC: World Bank, 2025-05-29)Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.Publication Institutional Capacity for Policy Implementation: An Analytical Framework(Washington, DC: World Bank, 2026-01-07)State capacity is an important prerequisite for policy implementation, yet at the country level it is difficult to measure, assess, and reform. This paper proposes a focus on institutional capacity: the ability of public institutions to implement the specific policy mandates for which they are responsible. Based on a review of existing literature, the paper defines the different dimensions that compose institutional capacity and groups them into two cross-cutting categories: organizational dimensions (personnel, financial resources, information systems, and management practices) and governance dimensions (transparency, independence, and accountability). The paper proposes measures for organizational and governance dimensions using existing data, shows intra-institutional variation of these measures within countries, and discusses how new data could be collected for better measurement of these concepts. Finally, the paper illustrates how the framework can be used to diagnose the sources of common problems related to weak policy implementation.Publication South Africa’s Fragmented Cities: The Unequal Burden of Labor Market Frictions(Washington, DC: World Bank, 2026-01-08)Using high-resolution administrative, census, and satellite data, this paper shows that South African cities are characterized by spatial mismatches between where people live and where jobs are located, relative to 20 global peers. Areas within 5 kilometers of commercial centers have 9,300 fewer residents per square kilometer than expected, which is 60 percent below the global median. Poor, dense neighborhoods are most affected. In Johannesburg, a 10-percentile increase in distance from the nearest business hub corresponds to a 3.7-percentile drop in asset wealth (a proxy of household wellbeing) and 4.9-percentile drop in employment. In Cape Town, the declines are 4.0 and 3.7 percentiles, respectively. Employment is 87 percent lower in the poorest decile than the richest in Johannesburg and 61 percent lower in Cape Town. These findings suggest that South Africa’s spatial organization of people and economic activity constrains agglomeration and reinforces inequality. This methodology provides a scalable and standardized data-driven framework to analyze spatial accessibility and agglomeration frictions in complex, data-constrained urban systems.Publication Investment in Emerging and Developing Economies(Washington, DC: World Bank, 2026-01-07)The world faces a pressing challenge to meet key development objectives amid slowing growth and rising macroeconomic and geopolitical risks. With the number of job seekers rising rapidly, infrastructure shortfalls continuing to be large, and climate costs mounting, the case for a significant investment push has never been stronger. Yet the capacity to respond in many emerging markets and developing economies has eroded. Since the global financial crisis, investment growth has slowed to about half its pace in the 2000s, with both public and private investment weakening. Foreign direct investment inflows—a critical source of capital, technology, and managerial know-how—have also fallen sharply and become increasingly concentrated, leaving low-income countries with only a marginal share. The risks of further retrenchment are significant, as trade tensions, policy uncertainty, and elevated debt levels continue to weigh on investment. Reigniting momentum will require ambitious domestic reforms to strengthen institutions, rebuild macro-fiscal stability, and deepen trade and investment integration—the foundations of a supportive business climate. At the same time, international cooperation is indispensable. A renewed commitment to a predictable system of cross-border trade and investment flows, combined with scaled-up financial support and sustained technical assistance, is essential to help emerging markets and developing economies—especially low-income countries and economies in fragile and conflict situations—bridge financing gaps and implement the domestic reforms needed to restore investment as an engine of growth, jobs, and development.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Inclusion Matters : The Foundation for Shared Prosperity(Washington, DC, 2013-10-18)Today, the world is at a conjuncture where issues of exclusion and inclusion are assuming new significance for both developed and developing countries. The imperative for social inclusion has blurred the distinction between these two stylized poles of development. Countries that used to be referred to as developed are grappling with issues of exclusion and inclusion perhaps more intensely today than they did a decade ago. And countries previously called developing are grappling with both old issues and new forms of exclusion thrown up by growth. Nonlinear demographic transitions, global economic volatility, shifts in the international balance of power, and local political movements have had a large part to play in these shifting sands. These changes make social inclusion more urgent than it was even a decade ago. This report tries to put boundaries around the abstraction that is "social inclusion." Placing the discussion of social inclusion within such global transitions and transformations, the report argues that social inclusion is an evolving agenda. It offers two easy-to-use definitions and a framework to assist practitioners in asking, outlining, and developing some of the right questions that can help advance the agenda of inclusion in different contexts. This report builds on previous analytical work, especially by the World Bank, on themes that touch upon social inclusion, including multidimensional poverty, inequality, equity, social cohesion, and empowerment. There are seven main messages in this report: (1) excluded groups exist in all countries; (2) excluded groups are consistently denied opportunities; (3) intense global transitions are leading to social transformations that create new opportunities for inclusion as well as exacerbating existing forms of exclusion; (4) people take part in society through markets, services, and spaces; (5) social and economic transformations affect the attitudes and perceptions of people. As people act on the basis of how they feel, it is important to pay attention to their attitudes and perceptions; (6) exclusion is not immutable. Abundant evidence demonstrates that social inclusion can be planned and achieved; and (7) moving ahead will require a broader and deeper knowledge of exclusion and its impacts as well as taking concerted action. The report is divided into three parts. Part one is framing the issues. Part two focuses on transitions, transformations, and perceptions. Part three is change is possible.Publication "They Are Not Like Us" : Understanding Social Exclusion(World Bank, Washington, DC, 2014-02)Negative attitudes toward groups in society are widespread and underpin systematic processes of social exclusion that marginalize people and deny them opportunities and dignity. This paper looks at the processes underlying social exclusion. It uses data covering Eastern Europe and Central Asia to study the responses to a simple hypothetical survey question about which specific groups respondents would not like to have as neighbors. Unwelcoming attitudes toward groups such as immigrants, ethnic minorities, the poor, HIV+ individuals, and others are surprisingly common. These attitudes fall into three distinct clusters: intolerance for the poor and for different lifecycle stages; intolerance toward stigmatized attributes and behaviors; and intolerance toward specific identity groups. An empirical analysis of the determinants of attitudes shows that country-specific factors are far more important than socio-economic characteristics. These findings could have important implications for theories about exclusion and for the design of appropriate social inclusion policies. The authors argue that strategies to address social exclusion need to consider ways to change social norms, attitudes, and behaviors toward disadvantaged groups. The paper explores potential entry points for change within formal and informal institutions.Publication Delivering Services in Multicultural Societies(World Bank, 2010)The last two decades have witnessed a growing recognition of the importance of taking cultural and ethnic diversity into consideration when designing and implementing development programs. As societies around the world have become more culturally diverse, and the role culture plays in the formation of identity has become better understood, governments are beginning to pay greater attention to the management of cultural diversity and are becoming more sensitive to issues of cultural exclusion. This book explores how taking cultural diversity into account can affect the delivery of services both positively and negatively, and how local governments can respond to the challenge of programming for and around diversity. The following chapter presents the current debate on the role of governments, at all levels, in managing cultural diversity. Chapter three takes a more in-depth look at specific areas in which the demand for recognition of cultural practices in the delivery of services is strongest. Chapter four examines policies pertaining to basic service delivery that can address and support cultural diversity. Finally, chapter five summarizes the lessons learned from the design of culturally sensitive policies for delivering services to a diverse population.Publication Family Systems, Political systems, and Asia’s ‘Missing Girls’ : The Construction of Son Preference and Its Unraveling(2009-12-01)Son preference is known to be found in certain types of cultures, that is patrilineal cultures. But what explains the fact that China, South Korea, and Northwest India manifest such extreme child sex ratios compared with other patrilineal societies? This paper argues that what makes these societies unique is that their pre-modern political and administrative systems used patrilineages to organize and administer their citizens. The interplay of culture, state, and political processes generated uniquely rigid patriliny and son preference. The paper also argues that the advent of the modern state in these settings has unraveled the underpinnings of the rigid patrilineal rules, and unleashed a variety of forces that reduce son preference. Firstly, the modern state has powerful tools for incorporating and managing its citizenry, rendering patrilineages a threat rather than an asset for the state. Secondly, the modern state has brought in political, social, and legal reforms aimed to challenge traditional social hierarchies, including the age and gender hierarchies of the kinship system. Thirdly, industrialization and urbanization have ushered in new modes of social organization, which reduce the hold of clans and lineages. Studies of the impact of the media suggest that states can accelerate the resultant decline in son preference, through media efforts to help parents perceive that daughters can now be as valuable as sons.Publication Strengthening Economic Rights and Women's Occupational Choice : The Impact of Reforming Ethiopia's Family Law(World Bank, Washington, DC, 2013-11)This paper evaluates the impact of strengthening legal rights on the types of economic opportunities that are pursued. Ethiopia changed its family law, requiring both spouses' consent in the administration of marital property, removing the ability of a spouse to deny permission for the other to work outside the home, and raising women's minimum age of marriage. Thus both access to resources and the removal of restrictions on employment served to strengthen women's bargaining position within the household and their ability to pursue economic opportunities. Although this reform now applies nationally, it was initially rolled out in the two chartered cities and three of Ethiopia's nine regions. Using nationally representative household surveys from just prior to the reform and five years later allows for a difference-in-difference estimation of the reform's impact. The analysis finds that women were relatively more likely to work in occupations that require work outside the home, employ more educated workers, and in paid and full-time jobs where the reform had been enacted, controlling for time and location effects. As the relative increase in women's participation in these activities was 15-24 percent higher in areas where the reform was carried out, the magnitude of the impact is significant too.
Users also downloaded
Showing related downloaded files
Publication Live Long and Prosper(Washington, DC, 2016)This book discusses the societal and public policy challenges and reform options for the East Asia and Pacific countries as they address aging. The book aims to strike a balance between optimism and pessimism over aging. On the one hand, the impacts of aging on growth, labor markets, and public spending need not represent the unavoidable catastrophe sometimes feared. On the other hand, minimizing the downside risks of aging and ensuring healthy and productive aging will require proactive public policy, political leadership, and new mindsets across society.Publication Tackling the World's Fastest-Growing HIV Epidemic(Washington, DC: World Bank, 2020-06-22)The Eastern Europe and Central Asia region has the world’s fastest growing HIV epidemic. Although still concentrated, the epidemic has diversified, affecting several key populations in many countries. This change has increased the number of people in need, the ways the epidemic can spread, and the complexity of formulating an effective strategy to combat it. At the same time, international funding is insufficient to cover the growing need, and domestic plans to cover the funding gaps, in many cases, fall short. In this environment, the need to use data to make the best possible decisions about using available funds is essential. Tackling the World’s Fastest-Growing HIV Epidemic tells the story of how, in 11 countries across Eastern Europe and Central Asia, small groups of decision-makers and experts came together to carry out innovative, groundbreaking analyses for each country. It details the steps these nations have taken to strengthen their HIV programs based on the findings while highlighting critical issues for the road ahead. In so doing, the book also shows the potential of what can be done with a mathematical model and how it can support real-life improvements in policy and more efficacious budget allocations. It is the record of a unique undertaking to improve public health investments that offers lessons for many communities.Publication Financial Pathways toward Greater Resilience and Economic Inclusion(Washington, DC: World Bank, 2025-03-24)Facilitating access to financial services is a core component of most economic inclusion programs, which aim to build resilience and create opportunities for poor and vulnerable households. These programs offer a comprehensive package of interventions, such as cash transfers, coaching, and business capital, to address the constraints preventing poor and vulnerable people from effectively coping with and recovering from shocks and accessing job opportunities. Understanding the barriers to financial inclusion and the specific needs of poor and vulnerable people is essential for tailoring products that create value for them and effectively contribute to their resilience. Core components of economic inclusion programs can be adapted to provide better pathways for greater resilience. This paper offers insights into how financial services facilitated in economic inclusion programs can better contribute to resilience building. First, it discusses how financial services can be designed to meet the needs of different participants and how synergies can be fostered between the financial inclusion components and other components to achieve greater financial inclusion and resilience. Second, the paper delves into how collaboration with financial service providers or market facilitators and leveraging digital technology can help achieve financial inclusion and resilience-building outcomes. Third, the paper offers recommendations for economic inclusion practitioners seeking to strengthen the financial inclusion components of their programs and financial inclusion practitioners aiming to complement their interventions to enhance the resilience of the most vulnerable microfinance clients.Publication Making Refugee Self-Reliance Work: From Aid to Employment in Sub-Saharan Africa(Washington, DC: World Bank, 2025-06-09)"Making Refugee Self-Reliance Work: From Aid to Employment in Sub-Saharan Africa" advocates for the enhancement of refugee self-reliance as a strategic, humane, development approach to refugee assistance. Facilitating refugees’ capacity to support themselves through gainful work not only upholds their dignity and autonomy but also offers socioeconomic benefits to host communities by unlocking opportunities for shared investment and development. The report demonstrates how refugee self-reliance in Sub-Saharan Africa remains elusive and identifies various reasons why this is the case: encampment limits the scope for self-reliance; restrictions on refugees’ right to work hinder self-sufficiency; small allocations of infertile land make even subsistence farming impossible; aid delivery in specific areas contributes to settlement patterns in which skills and economic opportunities do not match; economic development in remote, resource-scarce regions is unsustainable; and dependence on aid shifts funding priorities from long-term development to unproductive care and maintenance models. To overcome these challenges, the report outlines five areas for policy action: 1. Ending restrictive encampment policies 2. Boosting refugees’ economic participation 3. Supporting host communities 4. Reshaping financing and investment models 5. Investing in preparedness. Success requires committed leadership from host governments, as well as coordinated engagement and sustained support from humanitarian organizations and development partners.Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.