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Local employment multipliers when living and working areas are different

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  • Kim, Woo-Yung
  • Hong, Sung Hyo

Abstract

This study estimates the local employment multiplier for the case of Korea by using two distinct geographic units of analyses: working vs. living areas. Empirical results show that the estimates based on residential areas are relatively larger. From IV results, each additional job in the manufacturing sector seems to locally create 1.5 jobs in the service sector. It is smaller than those for US but larger than those for Swedish case.

Suggested Citation

  • Kim, Woo-Yung & Hong, Sung Hyo, 2019. "Local employment multipliers when living and working areas are different," Economics Letters, Elsevier, vol. 175(C), pages 47-50.
    • Handle: RePEc:eee:ecolet:v:175:y:2019:i:c:p:47-50
    DOI: 10.1016/j.econlet.2018.12.028
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    References listed on IDEAS

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    1. Enrico Moretti, 2010. "Local Multipliers," American Economic Review, American Economic Association, vol. 100(2), pages 373-377, May.
    2. Enrico Moretti & Per Thulin, 2013. "Local multipliers and human capital in the United States and Sweden," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(1), pages 339-362, February.
    3. Peri, Giovanni & Sparber, Chad, 2011. "Assessing inherent model bias: An application to native displacement in response to immigration," Journal of Urban Economics, Elsevier, vol. 69(1), pages 82-91, January.
    4. Moretti, Enrico & Hornbeck, Richard, 2018. "Who Benefits From Productivity Growth? Direct and Indirect Effects of Local TFP Growth on Wages, Rents, and Inequality," CEPR Discussion Papers 12953, C.E.P.R. Discussion Papers.
    5. Maarten Goos & Jozef Konings & Marieke Vandeweyer, 2018. "Local high-tech job multipliers in Europe," Industrial and Corporate Change, Oxford University Press, vol. 27(4), pages 639-655.
    6. Findeisen, Sebastian & Südekum, Jens, 2008. "Industry churning and the evolution of cities: Evidence for Germany," Journal of Urban Economics, Elsevier, vol. 64(2), pages 326-339, September.
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    Cited by:

    1. Lopes, Alef & Ruiz, Ricardo & Ribeiro, Rafael & Cantelmo, Weslley, 2023. "Linkages in the metal mining industry: Local job multipliers in Brazil," Resources Policy, Elsevier, vol. 82(C).

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    More about this item

    Keywords

    Local labor market; Employment multiplier; Residential area;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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