The Best Thing States Can Do to Create More Jobs

Lowering taxes on doing business might be the first thing that comes to mind when you think about ways for states to encourage job growth, but that isn't the case at all, according to a team of economists from Penn State. Their research shows that high-tech training may actually be the key to creating more jobs and improving a state's economy.

"We found that lower state taxes were not statistically associated with a state's economic performance," said Stephan Goetz, professor of agricultural and regional economics at Penn State. "The tax climate was not linked to either growth or income distribution."