An Economic Comparison of Cleveland and Atlanta

An Economic Comparison ofCleveland and Atlanta

Edward W. Hill

Senior Research Scholar, The Urban Center

Maxine Goodman Levin College of Urban Affairs

Cleveland State University

6/7/00 The Urban Center, Cleveland State University

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Comparing the economies

Cleveland-Akron Atlanta CMSA MSA

1997 GMP $92 $88.2 billion $118.3 billion % Increase 1992-97 24.1% 35.4%Population 1997 2.9 million 3.6 million% Increase 1992-97 0.8% 16.0%Non-population percent

increase in GMP 23.3% 19.4%Real Per Capita GMP

1997 $30,249 $32,559Increase 1992-97 $5,680 $4,655

6/7/00 The Urban Center, Cleveland State University

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City and Metropolitan Area Size

Population CityCMSA PMSA/MSA City Population per Land Area

City 1998 1998 1998 Square Mile: 1998 1990 RankAkron 688,952 215,712 3,468 62.2 56Cleveland 2,908,439 2,222,731 495,817 6,439 77.0 54Atlanta 3,746,059 403,819 3,064 131.8 35

6/7/00 The Urban Center, Cleveland State University

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Building PermitsPercent of permits issued from1990 to1996 to 1990 stock

Cleveland, Akron CMSA 6.2

Akron PMSA 8.8

Summit County 8.3

Cleveland, Elyria, Lorain PMSA 5.4

Cuyahoga County 3.1

Atlanta MSA 20.7

Cobb County 18.2

DeKalb County 8.9

Fulton County 14.8

Gwinnett County 36.1

6/7/00 The Urban Center, Cleveland State University

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Recent Unemployment Rates

February March1999 2000 1999 2000*

Akron PMSA 4.7 4.9 4.4 4.2Cleveland, Elyria, Lorain PMSA 5.0 5.1 4.5 4.4Atlanta MSA 3.3 2.8 3.3 2.7* preliminary

6/7/00 The Urban Center, Cleveland State University

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Percentage Point Difference Between the CMSA’s Annual Unemployment Rate and the National Rate

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Year 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97

Year

Perc

enta

ge P

oint

Diff

eren

ce

Source: U.S. Bureau of Labor Statistics

6/7/00 The Urban Center, Cleveland State University

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Employment Growth Index for the US, Cleveland-Akron CMSA, Cleveland PMSA, and Akron PMSA

80.0

90.0

100.0

110.0

120.0

130.0

140.0

72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98

Year

Emp

loym

en

t In

de

x (1

979=

100)

United StatesAkron PMSA

Cleveland-Akron CMSA

Cleveland PMSA

source: U.S. Bureau of Labor Statistics

United States

Cleveland PMSA

Akron PMSA

6/7/00 The Urban Center, Cleveland State University

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Metropolitan Population Growth

Population Percent Change1998 1980-1990 1990-1998

Cleveland,Akron CMSA 2,911,683 -2.7 1.8 Akron PMSA 688,952 -0.4 4.8 Cleveland, Elyria, Lorain PMSA 2,222,731 -3.3 0.9 Atlanta MSA 3,746,059 32.5 26.6

6/7/00 The Urban Center, Cleveland State University

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City Population Change

Population Percent Change

City 1998 1970 to 1980 1980 to 1990 1990 to 1998 1970 to 1998

Cleveland 495,817 -23.6 -11.9 -1.9 -34.0

Akron 215,712 -13.9 -6.0 -3.3 -21.7

Lorain 68,857 -3.9 -5.5 -3.4 -12.3

Elyria 56,278 7.3 -1.4 -0.8 4.9

Atlanta 408,819 -14.5 -7.3 2.5 -18.8

6/7/00 The Urban Center, Cleveland State University

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Suburban Population Growth Rates

Percent Change

PMSA /MSA 1970-1980 1980-1990 1990-1998 1970-1998

Cleveland, Lorain, Elyria 2.3 -0.2 2.1 4.3

Akron 5.7 2.2 10.0 18.9

Atlanta 42.8 41.9 30.3 163.9

6/7/00 The Urban Center, Cleveland State University

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Population by Race1996 estimates

Asian or

White Black Pacific

Cleveland, Akron CMSA 82.0 16.5 1.3

Akron PMSA 87.8 10.8 1.2

Summit Cnty 85.6 13.0 1.2

City of Akron (1990) 24.5 50th largest

Cleveland, Elyria, Lorain PMSA 80.3 18.3 1.3

Cuyahoga Cnty 71.6 26.6 1.6

City of Cleveland (1990) 46.6 13th largest

Atlanta MSA 71.4 25.8 2.6

Fulton Cnty 44.6 53.4 1.8

City of Atlanta (1990) 67.1 12th largest in nation

6/7/00 The Urban Center, Cleveland State University

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Change in the Central Cities’ Share of Metropolitan Employment: 1993-1996

Central Cities' PercentageEmployment Share Point1993 1996 Change

Akron 39.1 37.4 -1.7

Cleveland 29.1 28.4 -0.7

Atlanta 21.6 20.2 -1.4

6/7/00 The Urban Center, Cleveland State University

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Suburban and Central City Employment Growth Rates of MSAs: 1993 to 1996

Suburban toEmployment Growth Rate Central City

MSA Suburban Central CityGrowth RatioAkron 13.3 5.6 2.4Cleveland 8.4 4.7 1.8Atlanta 20.0 10.1 2.0

6/7/00 The Urban Center, Cleveland State University

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Distribution of EmploymentCleveland-Akron CMSA: 1997

PercentTotal Distribution

Cleveland & Akron City Total 366,940 30.8%Central Business District 173,581 14.6%

Balance of City 193,359 16.2%Suburban Total 822,974 69.2%

Distressed suburbs 110,323 9.3%Pre-war suburbs 85,725 7.2%

Early post-war suburbs 476,476 40.0%Recently developed suburbs 150,450 12.6%

Total 1,189,914 100.0%

Source: The Urban Center, Cleveland State University, ES-202

6/7/00 The Urban Center, Cleveland State University

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Comparing the economies

Income Relations: Central City & Suburb

Inflation Adjusted Difference* RatioMetropolitan Suburban - Central City Suburban:Central CityStatistical Median Household Income Median Household Income

Area 1979 1989 1979 1989Akron 14,655 15,705 1.44 1.54Cleveland 21,219 22,688 1.77 1.54Atlanta 18,761 19,793 1.74 1.68

6/7/00 The Urban Center, Cleveland State University

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Poverty Over the Business Cycle

1995 Percent of the Population PoorNumber Percent of in PovertyPoor State 1995 1993 1989

Ohio 1,259,806 11.3 13.7 12.1Cuyahoga 200,837 15.9% 14.3 18.1 14.5Lorain 29,014 2.3% 10.4 11.7 10.5Summit 60,087 4.8% 11.3 14.3 13.2

Georgia 1,136,374 15.6 16.8 14.9Cobb 40,353 3.6% 7.4 8.2 5.1De Kalb 92,296 8.1% 15.7 16.3 10.1Fulton 147,853 13.0% 20.9 23.0 20.0Gwinnett 25,245 2.2% 5.2 5.8 3.6

6/7/00 The Urban Center, Cleveland State University

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1997 Employment Specialization

Location QuotientsCleveland Atlanta Akron

Full & part-time Employment OH-PA GA-AL-NC CMSANonfarm proprietors 0.9 0.9 0.8 Private 1.0 1.0 1.1 Construction 0.9 1.1 0.9 Manufacturing 1.5 1.0 1.4 Transportation and public utilities 0.8 1.4 0.8 Wholesale trade 1.1 1.5 1.2 Retail trade 1.0 1.0 1.0 Finance, insurance, & real estate 0.9 1.0 1.1 Services 1.0 0.9 1.0 Government 0.8 0.8 0.8 Federal (civil & military) 0.5 0.7 0.6 State and local 0.9 0.9 0.8 State 0.5 0.8 0.2 Local 1.0 0.9 1.1

6/7/00 The Urban Center, Cleveland State University

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1997 Employment SpecializationEmployment Growth Rates: 1992 to 1997

BEA Regions ClevelandEmployment Growth Rates United Cleveland Atlanta Akron

1992 to 1997 States OH-PA GA-AL-NC CMSATotal 12.2% 10.8% 23.4% 10.3%Nonfarm proprietors 17.3% 17.8% 25.1% 18.1%

Private 14.6% 12.2% 26.3% 11.7%

Construction 22.6% 21.7% 35.5% 20.6%

Manufacturing 3.8% 4.3% 10.3% 1.1%

Transportation and public utilities 16.3% 11.8% 21.2% 8.7%

Wholesale trade 7.4% 9.1% 14.4% 7.3%

Retail trade 14.5% 13.1% 28.3% 12.5%

Finance, insurance, & real estate 14.4% 19.5% 26.2% 23.1%

Services 19.2% 14.5% 33.1% 14.7%

Government 1.6% 2.3% 7.8% 0.1%

Federal (civil & military) -13.7% -10.0% -8.3% -12.3%

State and local 7.2% 4.7% 12.8% 3.2%

State 5.5% 2.0% 14.4% 0.1%

Local 7.9% 5.2% 12.2% 3.5%

6/7/00 The Urban Center, Cleveland State University

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1997 Earnings SpecializationLocation Quotients

Bureau of Economic Analysis Areas ClevelandNortheast Ohio Atlanta Akron CMSA

Agriculure services & mining 0.3 0.0 0.3Construction 0.9 1.1 0.9Durable goods 1.9 0.7 1.6Nondurable goods 0.8 0.5 1.1Wholesale trade 1.1 1.8 1.2Retail trade 1.0 1.1 0.9Transportation services 0.8 0.3 0.8Financial producer services 0.7 0.9 0.8Business services 0.7 1.5 0.8Information and research services 0.8 1.5 1.0Nonfinancial producer services 0.7 0.9 0.8Tourism & entertainment services 0.8 0.0 0.8Health services 1.2 0.9 1.2Personal & social services 0.8 0.6 0.9Government & government enterprises 0.8 0.8 0.8

6/7/00 The Urban Center, Cleveland State University

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1997 Earnings Specialization Sources of Earnings

BEA Regions Cleveland1997 Per Capita United Cleveland Atlanta Lorain-Elyria

Sources of Income States OH-PA GA-AL-NC PMSAPersonal income 25,288 24,713 26,119 27,314 Net earnings 16,787 16,132 19,106 17,969 Gov Transfer payments 4,147 4,505 3,137 4,691 Income maintenance 361 314 269 345 Unemployment insurance 76 69 33 65 Retirement & other 3,710 4,122 2,835 4,281 Dividends, interest, & rent 4,354 4,077 3,876 4,654 Population 267,743,595 4,650,437 4,874,548 2,227,495

6/7/00 The Urban Center, Cleveland State University

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Change in Sources of Income During the Recovery: 1992-1997

Percent Change in BEA Regions ClevelandPer Capita Sources of United Cleveland Atlanta Lorain-Elyria

Income: 1992-1997 States OH-PA GA-AL-NC PMSAPersonal income 23.1% 24.1% 26.9% 24.5%Net earnings 22.4% 23.8% 27.4% 23.9%Gov Transfer payments 23.2% 22.2% 24.7% 23.1% Income maintenance 13.2% -0.6% 15.5% 0.0% Unemployment insurance -51.0% -53.4% -64.1% -52.9% Retirement & other 28.3% 27.9% 29.4% 28.6%Dividends, interest, & rent 25.5% 27.4% 26.3% 28.0%Population 5.0% 0.8% 14.2% 0.2%

6/7/00 The Urban Center, Cleveland State University

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Educational Attainment Adult Population: 1990

CMSA MSA MetropolitanCleveland Atlanta Average** Median

College Percent 19.0% 26.8% 22.5% 18.8%Rank* 134 32

Some College Percent 23.9% 26.1% 25.9% 25.6%Rank* 184 127

High School Percent 33.4% 26.7% 28.6% 30.6%Rank* 84 226

Less Than HS Percent 23.7% 20.5% 23.0% 23.8%Rank* 144 197

Source: 1990 Census of Population, PUMS* Among 284 metropolitan areas** Weighted average of all metropolitan areas

6/7/00 The Urban Center, Cleveland State University

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Index of Higher Educational Attainment: Adults Age 25 ands above in 284 CMSAs and MSAs in 1990

Educated LaborMetro Area RankingDenver 15San Francisco 16Phoenix 18Austin 26Minneapolis 28Dallas 35Atlanta 79Detroit 92Flint 108Chicago 113Charlotte 116St. Louis 133Boston 145Dayton 148Columbus 152Indianapolis 163Buffalo 164Cincinnati 179Cleveland 183Louisville 191Pittsburgh 233

6/7/00 The Urban Center, Cleveland State University

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Percent of Adult Central City Residents with BA or Higher: 1990

Percent Adults withCity BA or Higher: 1990

Akron 14.9Cleveland 8.1Atlanta 26.6