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Persistent Low Wages in New Orleans’ Economic Resurgence: Policies for Improving Earnings for the Working Poor
(2015)
  • Marla Nelson, University of New Orleans
  • Laura Wolf-Powers, The Graduate Center, City University of New York
  • Jessica Fisch, Georgia Institute of Technology - Main Campus
Abstract

In the nearly ten years since Hurricane Katrina struck the Gulf Coast, causing the levees to fail and devastating the New Orleans economy, the region has recovered nearly all of its peak pre-Hurricane Katrina jobs and shows signs of continuing economic strength. Entrepreneurial activity has grown faster than the national average and an influx of young professionals has helped reverse the decades-long brain drain, sparking a sense of optimism and evoking a narrative of resilience. Yet despite New Orleans’ economic resurgence, many workers are stuck in low-wage jobs. The income gap has widened, with New Orleans ranking second in income inequality among 300 U.S. cities,5 and poverty remains entrenched. More than one out of every three children in New Orleans lives in poverty even though the majority of children in the city have at least one parent in the workforce.The issues of income inequality and working poverty are of increasing concern nationwide. Working poverty is not just an economic issue — it is a resilience issue as well. Low-income households struggle to bounce back from disasters and economic shocks, more so than those who are economically comfortable. Thus a community’s capacity to be resilient after a disaster is hindered if large segments of the population are working poor.Connecting the working poor to opportunities that move them into the middle class can ultimately increase the resilience capacity of the region. This essay sheds light on the lingering issues of low-wage work and working poverty in New Orleans’ recovery, highlights promising workforce initiatives in the region, and points to key policy recommendations that can increase opportunity and resiliency regionwide

Keywords
  • New Orleans,
  • low wage work
Disciplines
Publication Date
August, 2015
Citation Information
Marla Nelson, Laura Wolf-Powers and Jessica Fisch. "Persistent Low Wages in New Orleans’ Economic Resurgence: Policies for Improving Earnings for the Working Poor" 2015