Panel Paper: Findings from Focus Groups on Economic Inclusion in Smaller Cities

Thursday, November 7, 2019
I.M Pei Tower: Majestic Level, Savoy (Sheraton Denver Downtown)

*Names in bold indicate Presenter

Susan Longworth, Federal Reserve Bank of Chicago


What barriers are traditionally marginalized populations experiencing in connecting to the labor market, and how are community and economic development practitioners approaching the challenge of economic inclusion? The Community Development and Policy Studies division of the Federal Reserve Bank of Chicago explored these and other questions in a series of focus groups with policymakers, non-profits, and financial institutions in thirteen cities across the Seventh District. Several overarching themes emerged from qualitative analysis of the transcribed focus group discussions.

Economic growth is a necessary but not sufficient condition to foster economic inclusion. Efforts to include marginalized populations in the labor force seemed to have more momentum in cities and regions experiencing low unemployment, according to participants. Labor markets with more slack faced greater challenges in prioritizing and addressing inclusion. How to sustain the benefits of inclusion during periods of economic downturn requires further inquiry.

Fragmentation across institutions, geographies, and other systems was a key barrier to economic development entities. Organizations often shared similar goals but struggled to collaborate effectively given misaligned incentives. Neighborhoods within a city or broader region sometimes felt more competitive than cooperative with one another. Political boundaries were sometimes perceived as exacerbating inequalities. Making the case that economic inclusion is integral to regional economic growth and coordinating a broad based response was an aspect that participants struggled to address.

Economic inclusion requires economic development strategies that break down barriers and deliver opportunities to underserved populations. However, conversations around inclusion often excluded the very populations that stood to gain the most from it. Many participants expressed difficulty with diversity and representation in leadership and decision making, impeding the effectiveness of interventions.

Full Paper: