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Research Studies

"The Work Environment Index"

James Heintz, Robert Pollin and Dr. Jeanette Wicks Lim
Political Economy Research Institute, October 2005

Available online

The Work Environment Index (WEI), a new study published by the Political Economy Research Institute, ranks the best business climates to work in by state. It found that states with better working climates consistently had faster economic growth and lower poverty rates. The study suggests the best way to combat high poverty rates and improve work climates is by creating jobs that are not only decent but desirable for every employee.

The top five states to work in were:

1. Delaware
2. New Hampshire
3. Minnesota
4. Vermont
5. Iowa.

The worst states to work in were:

1. Mississippi
2. South Carolina and Utah (tie)
3. Arkansas
4. Texas
5. Louisiana

Researchers rated each state on a scale of 1-100 for three categories. Job opportunities, the first category, was determined by the state unemployment rate and the number of involuntary part-time workers who were unable to find a full-time job. The second category, job quality, was determined by the average state wages, cost of living, and the percentage of state employees receiving health and retirement benefits. Workplace fairness, the final category, measured the number of low-income workers, pay equality between men and women, and whether states have "right to work" provisions. The researchers averaged the three scores to determine state rankings.



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