2018’s Cities with the Most & Least Diversified Economies
1:26 AMPosted by: Richie Bernardo
“Don’t put all your eggs in one basket,” say the wisest investing experts. But that wisdom applies to the economy, too. During the Great Recession, local economies that diversified, tapping into new ideas and innovations, proved to be more resilient than the cities that stuck to their old tricks.
Some researchers have found that greater professional and industrial variety increases a city’s productivity, a pattern in growing and large urban areas in the U.S. and around the globe.
In other words, diversification helps an economy the way it protects an investor’s portfolio: Over time, job gains in some sectors will offset the losses in others. And that was exactly the outcome at the end of the financial crisis, when the number of professions in health care and social assistance multiplied while construction and manufacturing occupation rates declined.
In order to determine the most diversified local economies — and therefore the least susceptible to the changes in the market — WalletHub compared the 501 largest cities across three key metrics: industry diversity, occupational diversity and worker-class diversity. Read on for our findings, expert commentary from a panel of researchers and a full description of our methodology.
- Main Findings
- Ratio - Over Time
- Highest & Lowest Concentrations by Category
- Ranking by City Size
- Ask the Experts
- Methodology
|
Metric |
City with Highest Concentration |
City with Lowest Concentration |
|---|---|---|
| Industry Diversity | ||
| Agriculture, forestry, fishing and hunting, and mining | Gillette, WY (23.40%) | Glasgow, DE (<0.00%) |
| Construction | Tanaina, AK (14.80%) | Cambridge, MA (1.10%) |
| Manufacturing | Columbus, NE (32.70%) | Alamogordo, NM (0.60%) |
| Wholesale trade | Keene, NH (6.80%) | Sitka and, AK (0.40%) |
| Retail trade | Bentonville, AR (33.50%) | Arlington, VA (4.30%) |
| Transportation and warehousing, and utilities | North Platte, NE (16.00%) | Middlebury, VT (0.20%) |
| Information | Los Angeles, CA (6.00%) | Pike Creek Valley, DE (<0.00%) |
| Finance and insurance, and real estate and rental and leasing | West Des Moines, IA (23.70%) | Knik-Fairview, AK (1.80%) |
| Professional, scientific, and management, and administrative and waste-management services | Arlington, VA (28.70%) | Wahpeton, ND (3.30%) |
| Educational services, and health care and social assistance | Ann Arbor, MI (49.20%) | Cicero, IL (11.80%) |
| Arts, entertainment, and recreation, and accommodation and food services | Spring Valley, NV (37.70%) | West Hartford, CT (5.50%) |
| Other services, except public administration | Washington, DC (9.00%) | Evanston, WY (1.10%) |
| Public administration | Juneau, AK (22.40%) | Central Falls, RI (0.50%) |
| Occupational Diversity | ||
| Management, business, science, and arts occupations | Cambridge, MA (71.40%) | Central Falls, RI (9.10%) |
| Service occupations | Sunrise Manor, NV (35.70%) | Hockessin, DE (7.70%) |
| Sales and office occupations | Kalispell, MT (33.50%) | Lebanon, NH (13.60%) |
| Natural resources, construction, and maintenance occupations | Rock Springs, WY (23.90%) | Cambridge, MA (1.30%) |
| Production, transportation, and material moving occupations | Reading, PA (32.90%) | Arlington, VA (2.60%) |
| Worker-Class Diversity | ||
| Private wage and salary workers | Central Falls, RI (93.40%) | Juneau, AK (53.50%) |
| Government workers | Juneau, AK (38.40%) | Central Falls, RI (3.30%) |
| Self-employed in own but unincorporated business workers | Sitka and, AK (12.40%) | Pike Creek Valley, DE (2.00%) |
| Unpaid family workers | Havre, MT (2.20%) | Fairbanks, AK (<0.00%) |
| Rank | Large City Name (Score) | Rank | Midsize City Name (Score) | Rank | Small City Name (Score) |
|---|---|---|---|---|---|
| 1 | Sacramento, CA (76.59) | 1 | Clarksville, TN (76.66) | 1 | Lawton, OK (77.58) |
| 2 | Fresno, CA (76.43) | 2 | Hampton, VA (76.27) | 2 | Pearl City, HI (77.58) |
| 3 | Bakersfield, CA (76.40) | 3 | Norfolk, VA (76.23) | 3 | South Valley, NM (77.56) |
| 4 | El Paso, TX (75.99) | 4 | Salem, OR (76.20) | 4 | Juneau, AK (77.30) |
| 5 | Corpus Christi, TX (75.90) | 5 | Anchorage, AK (76.04) | 5 | Knik-Fairview, AK (77.28) |
| 6 | Virginia Beach, VA (75.67) | 6 | Chesapeake, VA (76.03) | 6 | Portsmouth, VA (77.23) |
| 7 | Oklahoma City, OK (75.57) | 7 | Montgomery, AL (75.95) | 7 | Hilo, HI (77.23) |
| 8 | Los Angeles, CA (75.42) | 8 | North Charleston, SC (75.87) | 8 | Clovis, NM (77.19) |
| 9 | Long Beach, CA (75.35) | 9 | Jackson, MS (75.67) | 9 | Carson City, NV (77.17) |
| 10 | Honolulu, HI (75.30) | 10 | Columbus, GA (75.55) | 10 | Mililani Town, HI (77.17) |
| 11 | Miami, FL (75.01) | 11 | Laredo, TX (75.55) | 11 | Badger, AK (77.07) |
| 12 | Tucson, AZ (74.72) | 12 | Newport News, VA (75.50) | 12 | Sitka and, AK (77.05) |
| 13 | Fort Worth, TX (74.67) | 13 | Fayetteville, NC (75.39) | 13 | Green River, WY (77.01) |
| 14 | Oakland, CA (74.56) | 14 | Hialeah, FL (75.30) | 14 | Cheyenne, WY (76.86) |
| 15 | Houston, TX (74.56) | 15 | Augusta, GA (75.09) | 15 | Tanaina, AK (76.77) |
| 16 | Aurora, CO (74.55) | 16 | Kansas City, KS (75.08) | 16 | Midwest City, OK (76.70) |
| 17 | Memphis, TN (74.54) | 17 | Tacoma, WA (75.07) | 17 | Goose Creek, SC (76.69) |
| 18 | Arlington, TX (74.51) | 18 | Topeka, KS (74.95) | 18 | Riverton, WY (76.50) |
| 19 | San Antonio, TX (74.44) | 19 | Newark, NJ (74.86) | 19 | Kaneohe, HI (76.43) |
| 20 | Phoenix, AZ (74.38) | 20 | Kent, WA (74.85) | 20 | Alamogordo, NM (76.42) |
| 21 | Colorado Springs, CO (74.29) | 21 | Thornton, CO (74.79) | 21 | Ewa Gentry, HI (76.28) |
| 22 | Albuquerque, NM (74.29) | 22 | Lakewood, CO (74.76) | 22 | Lakes, AK (76.24) |
| 23 | Mesa, AZ (74.18) | 23 | Gresham, OR (74.75) | 23 | Wasilla, AK (76.20) |
| 24 | Austin, TX (74.18) | 24 | Vancouver, WA (74.74) | 24 | Santa Fe, NM (76.14) |
| 25 | Anaheim, CA (74.09) | 25 | West Valley City, UT (74.71) | 25 | Pierre, SD (76.12) |
| 26 | Dallas, TX (73.86) | 26 | Baton Rouge, LA (74.64) | 26 | Moore, OK (76.04) |
| 27 | San Diego, CA (73.79) | 27 | Lansing, MI (74.61) | 27 | Fairbanks, AK (76.02) |
| 28 | Jacksonville, FL (73.69) | 28 | Las Cruces, NM (74.54) | 28 | Enid, OK (75.98) |
| 29 | Tulsa, OK (73.62) | 29 | Reno, NV (74.52) | 29 | Waldorf, MD (75.93) |
| 30 | Kansas City, MO (73.59) | 30 | Billings, MT (74.47) | 30 | Hobbs, NM (75.92) |
| 31 | Nashville, TN (73.36) | 31 | Lincoln, NE (74.45) | 31 | Sumter, SC (75.77) |
| 32 | Louisville, KY (73.30) | 32 | Cape Coral, FL (74.42) | 32 | Clarksburg, WV (75.72) |
| 33 | New York, NY (73.27) | 33 | West Jordan, UT (74.42) | 33 | Roswell, NM (75.72) |
| 34 | Cleveland, OH (73.24) | 34 | Metairie, LA (74.40) | 34 | Gulfport, MS (75.69) |
| 35 | Columbus, OH (73.22) | 35 | Lafayette, LA (74.34) | 35 | Yakima, WA (75.66) |
| 36 | Wichita, KS (73.18) | 36 | Independence, MO (74.33) | 36 | Casper, WY (75.65) |
| 37 | Chicago, IL (73.16) | 37 | Glendale, AZ (74.31) | 37 | Martinsburg, WV (75.64) |
| 38 | Indianapolis, IN (73.13) | 38 | Springfield, IL (74.28) | 38 | Minot, ND (75.58) |
| 39 | Detroit, MI (73.04) | 39 | Arvada, CO (74.25) | 39 | Dickinson, ND (75.58) |
| 40 | New Orleans, LA (72.96) | 40 | Columbia, SC (74.24) | 40 | Sanford, ME (75.57) |
| 41 | Raleigh, NC (72.90) | 41 | Chattanooga, TN (74.22) | 41 | Albany, GA (75.55) |
| 42 | Denver, CO (72.85) | 42 | Murfreesboro, TN (74.08) | 42 | Kailua, HI (75.54) |
| 43 | Lexington, KY (72.79) | 43 | Joliet, IL (74.07) | 43 | Bossier City, LA (75.49) |
| 44 | Tampa, FL (72.78) | 44 | Boise, ID (74.04) | 44 | Layton, UT (75.46) |
| 45 | Omaha, NE (72.72) | 45 | Savannah, GA (74.03) | 45 | Rock Springs, WY (75.42) |
| 46 | Baltimore, MD (72.70) | 46 | Westminster, CO (74.01) | 46 | College, AK (75.38) |
| 47 | Portland, OR (72.69) | 47 | Des Moines, IA (73.98) | 47 | Augusta, ME (75.37) |
| 48 | San Jose, CA (72.60) | 48 | Everett, WA (73.97) | 48 | Anaconda, MT (75.33) |
| 49 | Milwaukee, WI (72.48) | 49 | Fort Lauderdale, FL (73.89) | 49 | Farmington, NM (75.29) |
| 50 | Charlotte, NC (72.42) | 50 | Spokane, WA (73.82) | 50 | Caldwell, ID (75.24) |
| 51 | Las Vegas, NV (72.09) | 51 | Birmingham, AL (73.73) | 51 | Butte-Silver Bow, MT (75.15) |
| 52 | St. Louis, MO (71.98) | 52 | Tallahassee, FL (73.73) | 52 | Glen Burnie, MD (75.15) |
| 53 | Philadelphia, PA (71.76) | 53 | Macon, GA (73.67) | 53 | Miles City, MT (75.12) |
| 54 | Atlanta, GA (71.59) | 54 | Elizabeth, NJ (73.62) | 54 | Mandan, ND (75.10) |
| 55 | San Francisco, CA (71.57) | 55 | Little Rock, AR (73.60) | 55 | Lewiston, ID (75.09) |
| 56 | Washington, DC (71.52) | 56 | North Las Vegas, NV (73.59) | 56 | Williston, ND (75.08) |
| 57 | Minneapolis, MN (71.15) | 57 | Knoxville, TN (73.55) | 57 | Idaho Falls, ID (75.05) |
| 58 | Seattle, WA (70.63) | 58 | Broken Arrow, OK (73.52) | 58 | Biloxi, MS (75.04) |
| 59 | Boston, MA (69.27) | 59 | Peoria, AZ (73.51) | 59 | Greenville, MS (75.03) |
| 60 | Pittsburgh, PA (68.96) | 60 | Huntsville, AL (73.46) | 60 | Federal Way, WA (75.02) |
| 61 | Henderson, NV (73.45) | 61 | Post Falls, ID (74.99) | ||
| 62 | Eugene, OR (73.43) | 62 | Sheridan, WY (74.92) | ||
| 63 | Fort Collins, CO (73.43) | 63 | Ogden, UT (74.91) | ||
| 64 | Greensboro, NC (73.42) | 64 | Rio Rancho, NM (74.88) | ||
| 65 | Manchester, NH (73.39) | 65 | Bellevue, NE (74.83) | ||
| 66 | Charleston, SC (73.37) | 66 | Havre, MT (74.83) | ||
| 67 | Pueblo, CO (73.31) | 67 | Coeur d'Alene, ID (74.79) | ||
| 68 | Bridgeport, CT (73.30) | 68 | Summerville, SC (74.78) | ||
| 69 | Mobile, AL (73.26) | 69 | Nampa, ID (74.75) | ||
| 70 | Norman, OK (73.17) | 70 | Kenner, LA (74.68) | ||
| 71 | Shreveport, LA (73.16) | 71 | Twin Falls, ID (74.67) | ||
| 72 | Surprise, AZ (73.15) | 72 | Harrisburg, PA (74.66) | ||
| 73 | Yonkers, NY (73.08) | 73 | Pine Bluff, AR (74.63) | ||
| 74 | Wilmington, NC (73.07) | 74 | Elizabethtown, KY (74.61) | ||
| 75 | Toledo, OH (73.06) | 75 | Evanston, WY (74.58) | ||
| 76 | Salt Lake City, UT (73.05) | 76 | Pocatello, ID (74.54) | ||
| 77 | Port St. Lucie, FL (73.05) | 77 | Gillette, WY (74.52) | ||
| 77 | Davenport, IA (73.05) | 78 | Kahului, HI (74.51) | ||
| 79 | Dayton, OH (73.03) | 79 | Rapid City, SD (74.51) | ||
| 80 | Richmond, VA (72.96) | 80 | Helena, MT (74.50) | ||
| 81 | Elgin, IL (72.93) | 81 | Olive Branch, MS (74.50) | ||
| 82 | Athens, GA (72.82) | 82 | Bend, OR (74.48) | ||
| 83 | Alexandria, VA (72.81) | 83 | Horn Lake, MS (74.40) | ||
| 84 | St. Petersburg, FL (72.80) | 84 | Sparks, NV (74.39) | ||
| 85 | Fargo, ND (72.79) | 85 | Great Falls, MT (74.39) | ||
| 86 | Green Bay, WI (72.76) | 86 | Danbury, CT (74.35) | ||
| 87 | Olathe, KS (72.75) | 87 | Smyrna, DE (74.34) | ||
| 88 | Waterbury, CT (72.68) | 88 | Taylorsville, UT (74.33) | ||
| 89 | Akron, OH (72.64) | 89 | Jamestown, ND (74.33) | ||
| 89 | Lowell, MA (72.64) | 90 | Hastings, NE (74.32) | ||
| 91 | Gilbert, AZ (72.57) | 91 | Spearfish, SD (74.32) | ||
| 92 | Springfield, MA (72.57) | 92 | Meridian, ID (74.31) | ||
| 93 | High Point, NC (72.54) | 93 | Frederick, MD (74.17) | ||
| 94 | Chandler, AZ (72.52) | 94 | Medford, OR (74.13) | ||
| 95 | Buffalo, NY (72.51) | 95 | East Honolulu, HI (74.12) | ||
| 96 | Aurora, IL (72.47) | 96 | Norfolk, NE (74.09) | ||
| 97 | Tempe, AZ (72.45) | 97 | Bismarck, ND (74.08) | ||
| 98 | Springfield, MO (72.38) | 98 | Waipahu, HI (74.05) | ||
| 99 | Stamford, CT (72.13) | 99 | Missoula, MT (74.05) | ||
| 100 | Fort Wayne, IN (72.06) | 100 | North Little Rock, AR (74.05) | ||
| 101 | Warren, MI (72.03) | 101 | Trenton, NJ (74.04) | ||
| 102 | Rockford, IL (72.01) | 102 | Rock Hill, SC (74.01) | ||
| 103 | Worcester, MA (71.99) | 103 | Toms River, NJ (74.00) | ||
| 104 | St. Paul, MN (71.99) | 104 | Silver Spring, MD (73.96) | ||
| 105 | Evansville, IN (71.98) | 105 | Meridian, MS (73.96) | ||
| 106 | Cedar Rapids, IA (71.97) | 106 | Norwalk, CT (73.95) | ||
| 107 | Hartford, CT (71.97) | 106 | Union City, NJ (73.95) | ||
| 108 | Jersey City, NJ (71.92) | 108 | Barre, VT (73.92) | ||
| 109 | Centennial, CO (71.83) | 109 | Edmond, OK (73.92) | ||
| 110 | Paterson, NJ (71.81) | 110 | Southaven, MS (73.91) | ||
| 111 | Madison, WI (71.73) | 111 | Springfield, OR (73.90) | ||
| 112 | Sioux Falls, SD (71.68) | 112 | Bartlett, TN (73.85) | ||
| 113 | Winston-Salem, NC (71.65) | 113 | Dover, DE (73.85) | ||
| 114 | Allentown, PA (71.57) | 114 | Concord, NH (73.80) | ||
| 115 | Sterling Heights, MI (71.56) | 115 | Council Bluffs, IA (73.78) | ||
| 116 | Cincinnati, OH (71.56) | 116 | Decatur, AL (73.75) | ||
| 117 | Erie, PA (71.48) | 117 | Covington, KY (73.72) | ||
| 118 | Grand Rapids, MI (71.44) | 118 | Bristol, CT (73.71) | ||
| 119 | Hillsboro, OR (71.29) | 119 | Watertown, SD (73.71) | ||
| 120 | Orlando, FL (71.18) | 120 | Bozeman, MT (73.66) | ||
| 121 | Columbia, MD (71.07) | 121 | Grand Island, NE (73.63) | ||
| 122 | Sunrise Manor, NV (70.97) | 122 | Hopkinsville, KY (73.62) | ||
| 123 | Syracuse, NY (70.62) | 123 | Lorain, OH (73.62) | ||
| 124 | South Bend, IN (70.39) | 124 | Aberdeen, SD (73.57) | ||
| 125 | Plano, TX (70.35) | 125 | Brookings, SD (73.57) | ||
| 126 | Scottsdale, AZ (70.21) | 126 | Albany, NY (73.55) | ||
| 127 | Columbia, MO (70.13) | 127 | Yankton, SD (73.54) | ||
| 128 | Durham, NC (70.09) | 128 | Roanoke, VA (73.49) | ||
| 129 | Rochester, NY (69.93) | 129 | Rochester, NH (73.49) | ||
| 130 | Overland Park, KS (69.80) | 130 | Dothan, AL (73.48) | ||
| 131 | Providence, RI (69.78) | 131 | Florence, KY (73.48) | ||
| 132 | Peoria, IL (69.51) | 132 | Renton, WA (73.45) | ||
| 133 | Arlington, VA (69.33) | 133 | Levittown, PA (73.44) | ||
| 134 | Cary, NC (69.27) | 134 | Parkersburg, WV (73.44) | ||
| 135 | Sandy Springs, GA (69.21) | 135 | Rutland, VT (73.44) | ||
| 136 | Naperville, IL (69.01) | 136 | Lynn, MA (73.43) | ||
| 137 | Enterprise, NV (68.99) | 137 | Charleston, WV (73.40) | ||
| 138 | Paradise, NV (68.97) | 138 | Clifton, NJ (73.37) | ||
| 139 | Provo, UT (67.88) | 139 | Gary, IN (73.34) | ||
| 140 | Bellevue, WA (67.29) | 139 | Mitchell, SD (73.34) | ||
| 141 | Spring Valley, NV (67.08) | 141 | Wheeling, WV (73.33) | ||
| 142 | New Haven, CT (67.02) | 141 | Laconia, NH (73.33) | ||
| 143 | Rochester, MN (62.85) | 143 | Conway, AR (73.29) | ||
| 144 | Ann Arbor, MI (62.43) | 144 | Schenectady, NY (73.28) | ||
| 145 | Cambridge, MA (60.03) | 145 | Weirton, WV (73.27) | ||
| 146 | Cheektowaga, NY (73.19) | ||||
| 147 | Grand Forks, ND (73.19) | ||||
| 148 | Bowling Green, KY (73.17) | ||||
| 149 | Kalispell, MT (73.16) | ||||
| 150 | Fairmont, WV (73.15) | ||||
| 151 | Alexandria, LA (73.15) | ||||
| 152 | Owensboro, KY (73.13) | ||||
| 153 | New Rochelle, NY (73.12) | ||||
| 154 | Germantown, MD (73.09) | ||||
| 155 | Youngstown, OH (73.08) | ||||
| 156 | Sandy, UT (73.04) | ||||
| 157 | Fremont, NE (73.04) | ||||
| 158 | Auburn, ME (73.02) | ||||
| 159 | Wahpeton, ND (73.01) | ||||
| 160 | New Bedford, MA (72.98) | ||||
| 161 | Hattiesburg, MS (72.96) | ||||
| 162 | Sioux City, IA (72.96) | ||||
| 163 | Warwick, RI (72.95) | ||||
| 164 | North Platte, NE (72.92) | ||||
| 165 | West Fargo, ND (72.91) | ||||
| 166 | St. George, UT (72.90) | ||||
| 167 | Bennington, VT (72.87) | ||||
| 168 | Fall River, MA (72.87) | ||||
| 169 | Beckley, WV (72.87) | ||||
| 170 | Scranton, PA (72.86) | ||||
| 171 | Georgetown, KY (72.82) | ||||
| 172 | St. Joseph, MO (72.81) | ||||
| 173 | Derry, NH (72.81) | ||||
| 174 | Shawnee, KS (72.80) | ||||
| 175 | Canton, OH (72.78) | ||||
| 176 | Lawrence, KS (72.75) | ||||
| 177 | Lake Charles, LA (72.74) | ||||
| 178 | Salina, KS (72.70) | ||||
| 179 | Cranston, RI (72.70) | ||||
| 180 | Bear, DE (72.68) | ||||
| 181 | Cicero, IL (72.64) | ||||
| 182 | Dover, NH (72.62) | ||||
| 183 | Jonesboro, AR (72.62) | ||||
| 184 | Parma, OH (72.62) | ||||
| 185 | Hammond, IN (72.59) | ||||
| 186 | Newport, RI (72.57) | ||||
| 187 | Richmond, KY (72.52) | ||||
| 188 | Racine, WI (72.50) | ||||
| 189 | Tuscaloosa, AL (72.49) | ||||
| 190 | Kearney, NE (72.47) | ||||
| 191 | Dubuque, IA (72.46) | ||||
| 192 | Waukegan, IL (72.44) | ||||
| 193 | Hilton Head Island, SC (72.44) | ||||
| 194 | New Britain, CT (72.43) | ||||
| 195 | Lewiston, ME (72.43) | ||||
| 196 | Woonsocket, RI (72.42) | ||||
| 197 | Brookside, DE (72.42) | ||||
| 198 | East Providence, RI (72.42) | ||||
| 199 | Passaic, NJ (72.39) | ||||
| 200 | Biddeford, ME (72.37) | ||||
| 201 | Mount Pleasant, SC (72.37) | ||||
| 202 | Bloomington, MN (72.36) | ||||
| 203 | Saco, ME (72.35) | ||||
| 204 | Beaverton, OR (72.30) | ||||
| 205 | Monroe, LA (72.27) | ||||
| 206 | Janesville, WI (72.26) | ||||
| 207 | Brattleboro, VT (72.26) | ||||
| 208 | Huron, SD (72.23) | ||||
| 209 | Kenosha, WI (72.23) | ||||
| 210 | Nashua, NH (72.22) | ||||
| 211 | Valley Falls, RI (72.22) | ||||
| 212 | Keene, NH (72.20) | ||||
| 213 | Springdale, AR (72.19) | ||||
| 214 | Manhattan, KS (72.18) | ||||
| 215 | Flint, MI (72.17) | ||||
| 216 | Stillwater, OK (72.14) | ||||
| 217 | Brockton, MA (72.12) | ||||
| 218 | Fort Smith, AR (72.10) | ||||
| 219 | Gaithersburg, MD (72.09) | ||||
| 220 | Lee's Summit, MO (72.07) | ||||
| 221 | O'Fallon, MO (72.04) | ||||
| 222 | Dearborn, MI (72.03) | ||||
| 223 | Waterloo, IA (72.00) | ||||
| 224 | Greenville, NC (71.98) | ||||
| 224 | Winooski, VT (71.98) | ||||
| 226 | Oshkosh, WI (71.90) | ||||
| 227 | South Portland, ME (71.90) | ||||
| 228 | Fayetteville, AR (71.88) | ||||
| 229 | Jackson, TN (71.87) | ||||
| 230 | Rogers, AR (71.86) | ||||
| 231 | Orem, UT (71.86) | ||||
| 232 | Eau Claire, WI (71.86) | ||||
| 233 | Westland, MI (71.83) | ||||
| 234 | Westerly, RI (71.76) | ||||
| 235 | St. Cloud, MN (71.75) | ||||
| 236 | Madison, AL (71.74) | ||||
| 236 | Portsmouth, NH (71.74) | ||||
| 238 | Tupelo, MS (71.72) | ||||
| 239 | Westbrook, ME (71.71) | ||||
| 240 | Wilmington, DE (71.67) | ||||
| 241 | Quincy, MA (71.61) | ||||
| 242 | Livonia, MI (71.61) | ||||
| 243 | Pawtucket, RI (71.56) | ||||
| 244 | Rockville, MD (71.55) | ||||
| 245 | Laramie, WY (71.53) | ||||
| 246 | Brooklyn Park, MN (71.51) | ||||
| 247 | Appleton, WI (71.46) | ||||
| 248 | St. Peters, MO (71.45) | ||||
| 249 | Camden, NJ (71.37) | ||||
| 250 | Lenexa, KS (71.35) | ||||
| 251 | Hoover, AL (71.30) | ||||
| 252 | Lancaster, PA (71.29) | ||||
| 253 | Essex Junction, VT (71.24) | ||||
| 254 | Waukesha, WI (71.20) | ||||
| 255 | Johnson City, TN (71.16) | ||||
| 256 | Portland, ME (71.14) | ||||
| 257 | Mount Vernon, NY (71.04) | ||||
| 258 | Bethlehem, PA (70.92) | ||||
| 259 | Columbus, NE (70.91) | ||||
| 260 | St. Charles, MO (70.89) | ||||
| 261 | Roswell, GA (70.82) | ||||
| 262 | Auburn, AL (70.80) | ||||
| 263 | Ames, IA (70.79) | ||||
| 264 | Lafayette, IN (70.71) | ||||
| 265 | Duluth, MN (70.65) | ||||
| 266 | Franklin, TN (70.58) | ||||
| 267 | Reading, PA (70.57) | ||||
| 268 | Greenville, SC (70.53) | ||||
| 269 | Middletown, DE (70.46) | ||||
| 270 | Woodbury, MN (70.32) | ||||
| 271 | Corvallis, OR (70.32) | ||||
| 272 | Glasgow, DE (70.24) | ||||
| 273 | Montpelier, VT (70.22) | ||||
| 274 | Bangor, ME (70.06) | ||||
| 275 | Burlington, VT (70.04) | ||||
| 276 | Ellicott City, MD (69.96) | ||||
| 277 | Bloomington, IN (69.84) | ||||
| 278 | Huntington, WV (69.66) | ||||
| 279 | Pike Creek Valley, DE (69.58) | ||||
| 280 | Morgantown, WV (69.48) | ||||
| 281 | Fishers, IN (69.29) | ||||
| 282 | Maple Grove, MN (69.23) | ||||
| 283 | South Burlington, VT (69.21) | ||||
| 284 | West Des Moines, IA (69.16) | ||||
| 285 | Jackson, WY (69.15) | ||||
| 286 | West Hartford, CT (69.08) | ||||
| 287 | Plymouth, MN (68.90) | ||||
| 288 | Central Falls, RI (68.81) | ||||
| 289 | Johns Creek, GA (68.45) | ||||
| 290 | Iowa City, IA (68.24) | ||||
| 291 | Carmel, IN (68.10) | ||||
| 292 | Newark, DE (67.93) | ||||
| 293 | Middlebury, VT (67.69) | ||||
| 294 | Bentonville, AR (67.13) | ||||
| 295 | Hockessin, DE (66.55) | ||||
| 296 | Lebanon, NH (66.22) |
Many scholars advocate for economic diversification, rather than specialization, to strengthen local economies. To shed more light on the benefits of the former, we asked a panel of experts to weigh in with their thoughts on the following key questions:
- What are the benefits to residents of living in an economically diverse city?
- Did cities with diversified economies better weather the recent economic downturn? Why?
- Are cities with diversified economies more likely to experience job and wage growth than cities with more specialized economies? Under what conditions?
- What policies and strategies can local authorities employ in order to encourage the diversification of the local economy?
Gary A. Hoover Chair and Professor of Economics, University of Oklahoma
Michael Ash Chair and Professor of Economics and Public Policy, University of Massachusetts Amherst
Andrew J. Cassey Associate Professor of Economics, Washington State University School of Economic Sciences
Andrew J. Hussey Associate Professor of Economics, University of Memphis
Sunwoong Kim Professor of Economics, University of Wisconsin–Milwaukee
David Brasington James C. and Caroline Kautz Chair in Political Economy, University of Cincinnati
Myles Shaver Professor of Strategic Management and Entrepreneurship, and Pond Family Chair in the Teaching and Advancement of Free Enterprise, Carlson School of Management, University of Minnesota
What are the benefits to residents of living in an economically diverse city? An economically diverse city, just like a diverse portfolio of stocks, is a shield against unforeseen downturns in certain sectors of the economy. Cities too dependent on one sector or one major employer are at the mercy of fickle market fluctuations. Did cities with diversified economies better weather the recent economic downturn? Why? Some cities fared somewhat better but the recent downturn was so systemic that very few areas of the economy were spared. All cities strive for a thriving housing market and increased income growth for its residents but even if the housing market in a city was not impacted, the secondary impacts to other parts of the economy were still felt. Are cities with diversified economies more likely to experience job and wage growth than cities with more specialized economies? Under what conditions? This is a difficult question to answer. Just recently we saw that cities/regions/states that had heavy concentrations in the oil and gas industry saw tremendous increases in jobs and wage growth. However, those same places are now experiencing much more accelerated declines in both jobs and wages. So in the end, did specialization help or hurt? What it does, it makes the highs higher but the lows lower. That type of volatility is not good for any economy. What policies and strategies can local authorities employ in order to encourage the diversification of the local economy? Policies that involve seed funding have proven to be effective if applied to the correct industry. Several cities have created arts councils to try to attract the film industry to their areas as a way of diversification. The results have been mixed because there are only so many films being made outside of Hollywood and there is tremendous competition. However, trying to attract other industries through tax incentives of seed funding can be effective. Michael Ash Chair and Professor of Economics and Public Policy, University of Massachusetts Amherst 
What are the benefits to residents of living in an economically diverse city? Economic diversity offers resilience in the face of economic change. An extreme case of economic monoculture is Detroit, which has suffered severely because of the decline of its all-eggs-in-one-basket automobile industry. A diverse economy permits less painful adjustment and creates greater possibility that the next big thing is already present. On the other hand, economic agglomeration can be a great engine of wealth with significant benefits for workers as well as owners -- machine tools in Springfield, Massachusetts, Detroit in its heyday, computers in Silicon Valley, optics in Rochester, finance in NYC, and so on. Agglomeration is a source of both wealth and vulnerability. Did cities with diversified economies better weather the recent economic downturn? Why? I'm not sure; that's an empirical question. There is evidence (from my colleague Fidan Kurtulus) that firms with worker participation and more widely held ownership better weather recessions. So that's another type of diversity in the economic ecosystem. Are cities with diversified economies more likely to experience job and wage growth than cities with more specialized economies? Under what conditions? My sense is that many of the biggest job and wage booms have been in concentrated or agglomerated areas (Silicon Valley, Route 128, etc.) Diversified economies may be better at sharing prosperity in the long run (although it's hard to separate cause and effect) and may also be better positioned defensively, if times change for the worse. So diversity may offer some protection against cycles of boom and bust. What policies and strategies can local authorities employ in order to encourage the diversification of the local economy? Local leadership should avoid the subsidy trap, offering enormous tax breaks to try to attract a big employer. It's almost irresistible because other cities are also bidding for the same companies, but it is often a race to the bottom. It would be good to have state or even Federal leadership in preventing these bidding wars. Here are some resources that local leaders can use to consider the options: Andrew J. Cassey Associate Professor of Economics, Washington State University School of Economic Sciences 
What are the benefits to residents of living in an economically diverse city? Though still at risk for systemic shocks, economically diverse cities are insured against idiosyncratic shocks. Did cities with diversified economies better weather the recent economic downturn? Why? The anecdotal evidence I am aware of does not seem to support that claim. My understanding is the hardest hit cities such as Las Vegas, Miami, and Phoenix are not diverse but neither were the successes of Williston / Minot / Bismarck ND. I don’t know the data to support a general case. Are cities with diversified economies more likely to experience job and wage growth than cities with more specialized economies? Under what conditions? This does not seem to be necessarily true. The recent experiences of North Dakota show that non-diverse economies can have huge job and wage growth, at least for some time. What policies and strategies can local authorities employ in order to encourage the diversification of the local economy? They can use tax incentives and subsidies to introduce other types of business that would otherwise not be competitive in that city. Whether they should do that is another question. Andrew J. Hussey Associate Professor of Economics, University of Memphis 
What are the benefits to residents of living in an economically diverse city? Economically diverse cities provide residents some insurance against major economic downturns, globalization, changing legislation, and natural technological progress, each of which is likely to have a differential effect on various industries and occupations. A varied economic composition in terms of jobs can also draw a diverse mix of residents, which could lead to cross-pollination of ideas -- or, at the very least, make life more interesting. Sunwoong Kim Professor of Economics, University of Wisconsin–Milwaukee 
What are the benefits to residents of living in an economically diverse city? More diverse jobs are available so that better match can be found between talents and job requirements. More diverse consumption goods and services are available, but the advantage of consumption goods are sharply reduced by the development of modern transportation system which is cheap and fast. However, diverse and more specialized service is valuable. Did cities with diversified economies better weather the recent economic downturn? Why? Not necessarily. Specialized cities with stable and growing demand for their products can weather economic downturn, however, a large city specialized in a declining industry will be hit hard in the economic downturn. Detroit would be a good example. It has been specialized in automobile manufacturing, a declining industry in the U.S. (although it is a booming industry globally). The fall of U.S. auto industry brought down Detroit. San Jose specialized in ICT industry that has been booming for the last several decades, and it has been doing well. Large cities (such as New York and L.A.) tend to be more diversified and are more likely to be stable throughout the business cycle. Are cities with diversified economies more likely to experience job and wage growth than cities with more specialized economies? Under what conditions? Not necessarily. Cities with growing industry are likely to experience growth in employment and wage. Small cities cannot be diversified too much. It needs to specialize in industries that have more competitiveness. At the same time, large cities specializing in a declining industry need to be more diversified in order to avoid the long term stagnation. What policies and strategies can local authorities employ in order to encourage the diversification of the local economy? Diversification cannot be the goal. It needs to be competitive in growing industries. However, if a city is specialized on declining industry it needs public policy attention. For example, Rochester specialized in film industry – it has gone down (at the same time Seattle specialized in ICT and aeronautics has been growing). David Brasington James C. and Caroline Kautz Chair in Political Economy, University of Cincinnati 
What are the benefits to residents of living in an economically diverse city? One of the main benefits is for dual-income households. A husband and wife typically work in different sectors, so they are more likely to both find jobs in a city with a large, diversified economic base. As for recipients of public services, if a city's Achilles' heel is struck, residents face huge cuts in services as the tax base suffers. In a more diversified economy, if one sector experiences a decline (oil, autos), maybe there is another sector that can make up for the slack or at least not stagnate, allowing tax collections to be relatively stable. Did cities with diversified economies better weather the recent economic downturn? Why? No: cities heavy into fracking technology did best. But cities that were heavily dependent on the sectors that got hit hardest suffered most, like autos, finance, and real estate. Are cities with diversified economies more likely to experience job and wage growth than cities with more specialized economies? Under what conditions? All else equal, large cities and cities with favored amenities (weather, recreation, and geography) will fare better in wage and job growth. Having a large concentration of people seems to generate knowledge spillovers that are necessary for innovation and growth, so large cities have an advantage in spawning new firms. Large cities also help solve the two wage-earner job search problem I mentioned above. What policies and strategies can local authorities employ in order to encourage the diversification of the local economy? There is tax competition and TIF competition to attract businesses, yes, but the best thing a local government can do is to offer quality public services at the lowest tax cost possible. Make sure there's enough land zoned for all the land uses needed in an area (industrial, commercial, residential). Make sure local residents are well-trained to compete for jobs. Have neat stuff that will attract young, highly-educated workers. Don't pick favorites: the market will let you know what types of firms will find your location attractive. Myles Shaver Professor of Strategic Management and Entrepreneurship, and Pond Family Chair in the Teaching and Advancement of Free Enterprise, Carlson School of Management, University of Minnesota 
What are the benefits to residents of living in an economically diverse city? I have observed three benefits of living in an economically diverse city. The first is the diversification benefit associated with regional economic stability. Living in a city with a diverse economy dampens the effect of a decline in any one sector. For example, cities dependent on the oil industry see notable declines in their tax base when oil prices drop. In these cases, cities face the difficult choice of having to cut spending or look for new sources of revenue. A diverse economy is less likely to see such pronounced swings. Second, a diverse economy experiences less marked supply and demand swings for its workforce. For example, during the last economic downturn Minneapolis-St. Paul – a metropolitan area with a diverse economy – had the lowest unemployment rate among the large metropolitan areas in the country. In part, this was because not all industries were contracting at the same rate – and some were expanding. Even when a city’s economy revolves around one fast-growing industry, worker shortages can stunt the industry’s growth. Although such growth might attract workers to the region, large waves of migration can also create societal difficulties if they outstrip a region’s ability to absorb the migrating workforce. A diverse economy is less likely to experience protracted misalignment of employment supply and demand. Third, to the extent that an employee’s skills are transferable across sectors, I have seen many employees benefit from working in a diverse range of industries over their career. This diversity of experience often deepens their underlying skills while broadening the applicability of these skills. A city with a diverse economy allows individuals to build their careers in this manner without having to relocate and uproot their family or sever their ties to the community.
Methodology
In order to identify the most diversified local economies, WalletHub compared 501 of the most populated U.S. cities — limiting each state to no more than 10 cities each - across three key metrics, which are listed below with their corresponding weights and subcomponents. Each metric was graded on a 100-point scale, with a score of 100 representing the most economic diversity.
We conducted our analysis using the Herfindahl-Hirschman Index method, which is a commonly accepted measure of market concentration that also works effectively as a general-purpose measure of diversity.
Our sample considers only the city proper in each case and excludes cities in the surrounding metro area. Each city was categorized according to the following population-size guidelines:
- Large cities: More than 300,000 residents
- Midsize cities: 100,000 to 300,000 residents
- Small cities: Fewer than 100,000 residents
We then determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.
Industry Diversity - Total Points: 60Note: Considers the civilian employed population aged 16 and older
- Agriculture, forestry, fishing and hunting, and mining
- Construction
- Manufacturing
- Wholesale trade
- Retail trade
- Transportation and warehousing, and utilities
- Information
- Finance and insurance, and real estate and rental and leasing
- Professional, scientific, and management, and administrative and waste management services
- Educational services, and health care and social assistance
- Arts, entertainment, and recreation, and accommodation and food services
- Other services, except public administration
- Public administration
Note: Considers the civilian employed population aged 16 and older
- Management, business, science, and arts occupations
- Service occupations
- Sales and office occupations
- Natural resources, construction, and maintenance occupations
- Production, transportation, and material moving occupations
Note: Considers the civilian employed population aged 16 and older
- Private wage and salary workers
- Government workers
- Self-employed workers (operating their own, unincorporated businesses)Note: Includes “people who worked for profit or fees in their own unincorporated business, professional practice, or trade or who operated a farm,” as defined by the U.S. Census Bureau.
- Unpaid family workers
Sources: Data used to create this ranking were collected from the U.S. Census Bureau.
from Wallet HubWallet Hub
via Finance Xpress
0 comments