COMP NEWS – The small town of Ruston, Louisiana, has experienced a plethora of young workers moving out and abroad. In response, the town has introduced a new incentive plan to replenish its rural population: move here and get paid to stay.

Fueled by the explosion in remote working, Ruston has joined a cohort of small cities and rural areas around the country offering incentives to lure new residents.

In Ruston’s case, the city government has awarded 25 grants worth $10,000 apiece to applicants who meet certain qualifications, including earning a certain income, working remotely and agreeing to stay for three years. Former students at Louisiana Tech University and Grambling State University, the area’s two institutions of higher learning, get preferential treatment.

Louisiana has experienced an exodus of its rural population over the last decade. In response, local officials are experimenting with various incentive programs, including this new “pay-to-move-in” model.

Louisiana has some of the hardest-hit rural areas in the country. U.S. Census data show that the state lost almost 5% of its rural population between 2010 and 2020.

Often, the leavers are younger, more educated residents. In their absence, many rural communities are left with blight and other economic struggles.

In response, some local officials have turned to incentive programs, including tax breaks and other measures aimed at stemming the tide of out-migration. Remote working has allowed officials in Kansas, Minnesota, Arkansas and other states to target workers instead of companies. Ruston is the only place in Louisiana to start such a program. 

Researchers are looking forward to learning from the results of such programs.

Incentive programs, while growing in popularity, aren’t the answer for every place, said Emily Wornell, an assistant professor of research at Ball State University’s Center for Local and State Policy who has studied them in other parts of the U.S.

It’s still too early to know which programs are going to be successful, she said. But early indicators are that towns that already have some things going for them — good education systems, decent job markets and cultural opportunities — are more likely to see success.

To read more about Ruston, Louisiana’s incentive program, click here.

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