KRC research at work

Pennsylvania Awarded Funding as Part of
Major New National Workforce Initiative

Commonwealth and group of 10 foundations and United Ways to receive $500,000 for efforts on behalf of employers and workers

The Pennsylvania Fund for Workforce Solutions, or PFWS, a partnership between the Commonwealth of Pennsylvania and 10 Pennsylvania philanthropic organizations has been awarded grants totaling $500,000 from the National Fund for Workforce Solutions (NFWS), a new initiative devoted to creating opportunities for lower-skilled workers while simultaneously increasing economic competitiveness. KRC is the non-profit technical assistance partner of the Commonwealth and Pennsylvania philanthropic organizations on the PFWS project.

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Reviewing 25 Years of Economic Activity

Rural Pennsylvania has rarely held the attention of national leaders or been the topic of national headlines. But all that changed in the run-up to this year’s presidential primary, when debate centered on small-town PA residents and their response to three decades of manufacturing job loss and unkept promises to bring jobs back.

Is the economy of small-town and rural Pennsylvania depressed? Is there a realistic hope for prosperity and for the middle class in rural PA?

There are no simple answers, say economists at the Keystone Research Center. As documented in The State of Rural Pennsylvania, the reality of rural Pennsylvania is richer than the cartoon drawn by the national media, and potentially much more promising—if state and federal policies provide the support so far lacking.

read more | download full report

Housing Prices in PA

In PA, Home Prices Falling Plus Unemployment Rising Could Equal Further Foreclosures

Freddie Mac, State Figures Support Notion that More Housing Woes May Be on Horizon for Commonwealth

Recent trends in housing prices in Pennsylvania suggest that larger declines lie ahead, researchers at the Keystone Research Center in Harrisburg said today. And, they added, those price declines, coupled with rising unemployment in the state, raise the risk of additional mortgage delinquencies and home foreclosures in Pennsylvania.

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New Research

Union Membership Increases Pay of Typical Pennsylvania Worker by 10 Percent

Union membership raises the wages of the typical Pennsylvania worker—the earner right in the middle of the pay scale—by 10.2 percent, according to a new report released jointly by the Center for Economic and Policy Research (CEPR) in Washington, DC, and the Keystone Research Center in Harrisburg.

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Pre-Primary Op-Ed

Voters Need Reason to Base Vote on Economy: Economic Plans Often Leave Out Real World

The primary flap between Barack Obama and Hillary Clinton has brought fresh attention to an old Pennsylvania political question: Why do non-college voters often vote on social issues rather than economic ones?

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Inequality Continues to Grow

Income Inequality Grew in Pennsylvania and Most States Over Past Two Decades

Middle- and Low-Income Families Have Made Few Gains since the Late 1990s, and Things Could Get Worse, Economist Says

Senators Clinton, Obama, and McCain need to show that they recognize the problem of growing economic inequality. They also need to offer solutions powerful enough to reverse current trends and to create a 21st century economy in which a rising tide once again lifts all boats.

The scale of the inequality problem in America is approaching that of the late 1920s and early 1930s. Are these candidates offering solutions on the scale of the New Deal?


Stephen Herzenberg
KRC executive director

The income gap between the richest and poorest families, and between rich and middle-income families, grew significantly in most states, including Pennsylvania, over the past two decades, according to a study released today by the Keystone Research Center in Harrisburg and KRC’s national partners, the Center on Budget and Policy Priorities and the Economic Policy Institute.

Since the late 1990s, the report shows, the average income of the poorest fifth of Pennsylvania families decreased by $1,281, from $20,241 to $18,960. Over the same period, the average incomes of the middle fifth and the richest fifth of families were unchanged. The only income group to experience substantial income gains since the late 1990s was the richest 5% of families, who saw their incomes increase by $25,674, from 190,541 to $216,216.

read more | download study | PA Fact Sheet

New ResearcH

African-American Pay Boosted by Union Membership

A new report from the Center for Economic and Policy Research analyzing data from the Census Bureau’s Current Population Survey (CPS), found that unionization raises the pay of African-American workers by about $2.00 per hour. According to the report, black workers in unions are also 16 percentage points more likely to have employer-provided health insurance and 19 percentage points more likely to have an employer-provided pension plan than black workers who are not in unions.

read more | CEPR PAPER

KRC IN THE NEWS

KRC Analysis of Economic Proposals Featured in Harrisburg Patriot-News

Stephen Herzenberg's analysis of the economic proposals of Democratic and Republican presidential primary candidates was featured in the Harrisburg Patriot News on Sunday, March 30. "At the moment, neither Obama nor Clinton has adequately reframed the discussion around economic policy," Herzenberg said.

read the story | download

PA HOUSING MARKET

Housing Market Woes Endanger PA Economy, Keystone Research Finds

Bursting Housing Bubble, Rising Foreclosures, and Credit Squeeze Could Mean Hard Times for Many Pennsylvanians

Harrisburg, January 31—The first detailed study of the housing market in Pennsylvania and its major economic has been released by KRC.

The study, A Building Storm: The Housing Market and the Pennsylvania Economy, shows that while the Commonwealth has escaped some of the huge housing-related troubles that have struck neighboring states, Pennsylvania residents should not be lured into a false sense of security.

read more | visit KRC Housing MArket Issue Guide

ANALYSIS OF DECEMBER 2007 PA EMPLOYMENT NUMBERS

Modest Job Growth, But Rise in Unemployment Mark New Jobs Report

Keystone Research Economists Call for Federal Action to Forestall Recession

Reacting to Pennsylvania's December 2007 employment report, economists at the Keystone Research Center in Harrisburg cautioned that, although the commonwealth is faring better than some states, the future of the state's economy remains highly uncertain.

According to KRC economist Mark Price, "The new data show that the state is losing ground compared with a year ago, and trends in other states suggest where we might be headed."

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RURAL PA ISSUES

Stephen Herzenberg on WKOK's Leaders and Lawmakers

Stephen Herzenberg, KRC's executive director, recently visited Sunbury to appear on WKOK radio's Leaders and Lawmakers program. The interview covered a number of topics related to KRC's State of Rural Pennsylvania report, including the new economic development strategies rural areas must adopt if they are to compete in the global economy.

listen to mp3 audio of the WKOK interview

Economic Development Accountability

Pennsylvania Gets C- for Online Disclosure of Economic Development Information

Pennsylvania garners a grade of C, 73 percent, in a new national study evaluating the accessibility of public information on state government websites. The state received a grade of C- for its web-based disclosure of information on job creation subsidies awarded to Pennsylvania businesses. The study, a research project of Good Jobs First (GJF), a national policy resource center promoting corporate and government accountability, ranked the 50 states' websites on the quantity and quality of information provided in three areas: procurement contracts, lobbying activities, and economic development subsidies.

Read more | See the KRC Issue Guide on Subsidy Accountability

New Unions

Pennsylvania Enters New Era in Labor Relations with Formation of Child Care Union

In an historic vote on October 31st, Pennsylvania home-based child care providers voted to become members of the Child Care Providers United union, CCPUNITED, by a majority of 97%.

The campaign to form a union of Pennsylvania home-based child-care providers caps a decades-long effort by a coalition of teachers, aides, and new unionists. These champions of child-care unionism believe that unionizing workers in a way that fits the field of early childhood education will mean better education for kids as well as better jobs and careers for educators.

The new child-care union brings together licensed home-based providers dispersed across thousands of homes statewide into a single union, and is the kind of union KRC has argued is essential to restoring broadly shared prosperity.

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State of Rural PA 2007 TOUR

Stephen Herzenberg Addresses Greater Susquehanna Valley Chamber of Commerce about The State of Rural Pennsylvania

KRC Executive Director Stephen Herzenberg recently addressed the annual economic forecast luncheon of the Greater Susquehanna Valley Chamber of Commerce about the economic future of rural Pennsylvania. The Sunbury Daily Item covered his address and cited information from recent State of Rural Pennsylvania report in an editorial on downtown development and the growing importance of regional approaches to economic development.

COMMENT ON THE 2007 State BUDGET

Stephen Herzenberg Addresses Budget Issues on WHYY Radio

Stephen Herzenberg, executive director of the Keystone Research Center, and Matthew Brouillette, president and CEO of the Commonwealth Foundation, discussed the late Pennsylvania budget crisis on WHYY's Radio Times program.

Listen to segment (mp3)

addressing the ChallEnge of growing inequality

Over 20 Pennsylvania organizations have endorsed The Prescription for Prosperity, an economic agenda outlining policy innovations in education, workforce and economic development, healthcare, and tax reform designed to support and expand Pennsylvania's middle class.

To prosper in the future Pennsylvania needs a long-term business plan; the Prescription for Prosperity is a first step toward developing it.

read more online | download the agenda | PRESS CONFERENCE VIDEO