For decades, state and local economies have leaned heavily on their anchor institutions during times of economic uncertainty and transition. An analysis finds that total employment in “Eds and Meds” industries increased in every state from 2005 to 2015. This article breaks down the growth and geography of Eds and Meds employment at the state level, while next week’s issue of the Digest will explore this data by metropolitan area.
On the other hand, an overreliance on Eds and Meds employment can have downsides, especially in cities burdened with high legacy costs, according to a report by Stephen Eide of the Manhattan Institute published last October. For example, because most Eds and Meds institutions have nonprofit status, this means that a growing share of a state or city’s tax base is exempt from property taxes. Furthermore, colleges and hospitals face considerable pressure from outside forces to keep their costs down. This could limit their ability to continue to sustain growth over time.
Nonetheless, the strategy is likely to remain common at both the state and local levels. This analysis will look at Eds and Meds through a state lens, while a subsequent analysis will address metropolitan areas.
Read more here.