IDEAS home Printed from https://ideas.repec.org/a/bla/growch/v50y2019i3p880-893.html
   My bibliography  Save this article

Heterogeneity in the local employment multipliers in the United States

Author

Listed:
  • Michael J. Osei
  • Shruti Sengupta

Abstract

Recent studies have found evidence of a local employment multiplier’s effect. For the most part, these studies provide an average estimate for all labor markets. In this paper, we examine how the average local employment multiplier, the effect of an exogenous increase in employment in the tradable sector on total employment, depends on the characteristics of the local labor market. Specifically, we estimate the average multipliers for coastal, noncoastal, large, and small metropolitan statistical areas (MSAs) across different time periods using the data of 333 US MSAs. Overall, we find a reduced form of local employment multiplier ranging from 1.38 to 2.24, which is within the range of typically estimated local employment multipliers. In addition, the characteristics of the local labor market matter. The local multipliers appear larger in noncoastal and large MSAs. For small and coastal metros, the multiplier is closer to 1.5 than to 2.0 while in the case of large and noncoastal metros, it is closer to 2.0 than to 1.5. The local multipliers are also sensitive to the time period considered.

Suggested Citation

  • Michael J. Osei & Shruti Sengupta, 2019. "Heterogeneity in the local employment multipliers in the United States," Growth and Change, Wiley Blackwell, vol. 50(3), pages 880-893, September.
    • Handle: RePEc:bla:growch:v:50:y:2019:i:3:p:880-893
    DOI: 10.1111/grow.12319
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/grow.12319
    Download Restriction: no
    File URL: https://libkey.io/10.1111/grow.12319?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:growch:v:50:y:2019:i:3:p:880-893. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0017-4815 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.