IDEAS home Printed from https://ideas.repec.org/a/eee/juecon/v116y2020ics0094119020300115.html
   My bibliography  Save this article

The role of airports in city employment growth, 1950–2010

Author

Listed:
  • McGraw, Marquise J.

Abstract

This study considers the effects of commercial airports on local economies over the post-World War II period (specifically, 1950–2010). To overcome endogeneity concerns, a pooled synthetic control event study strategy is employed on newly digitized historical aviation data to estimate treatment effects on a variety of employment, population, and wage outcomes. I find that airports have led to, on average, 3.9 percent growth in total employment (and 3.4% growth in population) per decade. Over the 30-year period for which wage and air traffic data are available, earnings per worker increased by 2%, and per-capita personal income increased by 3%, corresponding to growth rates of up to 1.2 percent per decade, respectively.

Suggested Citation

  • McGraw, Marquise J., 2020. "The role of airports in city employment growth, 1950–2010," Journal of Urban Economics, Elsevier, vol. 116(C).
  • Handle: RePEc:eee:juecon:v:116:y:2020:i:c:s0094119020300115
    DOI: 10.1016/j.jue.2020.103240
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0094119020300115
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jue.2020.103240?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212.
    2. Jan K. Brueckner, 2003. "Airline Traffic and Urban Economic Development," Urban Studies, Urban Studies Journal Limited, vol. 40(8), pages 1455-1469, July.
    3. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    4. Randall W. Eberts & Daniel P. McMillen, 1999. "Agglomeration Economies and Urban Public Infrastructure," Book chapters authored by Upjohn Institute researchers, in: Paul Cheshire & Edwin S. Mills (ed.),handbook or Regional and Urban Economics, volume 3, pages 1455-1495, W.E. Upjohn Institute for Employment Research.
    5. Filipe Campante & David Yanagizawa-Drott, 2018. "Long-Range Growth: Economic Development in the Global Network of Air Links," The Quarterly Journal of Economics, Oxford University Press, vol. 133(3), pages 1395-1458.
    6. Jeremy Atack & Matthew S. Jaremski & Peter L. Rousseau, 2014. "Did Railroads Make Antebellum U.S. Banks More Sound?," NBER Chapters, in: Enterprising America: Businesses, Banks, and Credit Markets in Historical Perspective, pages 149-178, National Bureau of Economic Research, Inc.
    7. Nicholas Sheard, 2019. "Airport Size and Urban Growth," Economica, London School of Economics and Political Science, vol. 86(342), pages 300-335, April.
    8. Susan Athey & Guido W. Imbens, 2017. "The State of Applied Econometrics: Causality and Policy Evaluation," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 3-32, Spring.
    9. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2011. "Synth: An R Package for Synthetic Control Methods in Comparative Case Studies," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 42(i13).
    10. Sheard, Nicholas, 2014. "Airports and urban sectoral employment," Journal of Urban Economics, Elsevier, vol. 80(C), pages 133-152.
    11. Shimeng Liu, 2015. "Spillovers from Universities: Evidence from the Land-Grant Program," Working Paper 9410, USC Lusk Center for Real Estate.
    12. Sarah J. Reber, 2005. "Court Ordered Desegregation: Successes and Failures Integrating American Schools since Brown versus Board of Education," Journal of Human Resources, University of Wisconsin Press, vol. 40(3).
    13. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    14. Sheard, Nicholas, 2014. "Airports and urban sectoral employment," Journal of Urban Economics, Elsevier, vol. 80(C), pages 133-152.
    15. Blonigen, Bruce A. & Cristea, Anca D., 2015. "Air service and urban growth: Evidence from a quasi-natural policy experiment," Journal of Urban Economics, Elsevier, vol. 86(C), pages 128-146.
    16. Sekhon, Jasjeet S., 2011. "Multivariate and Propensity Score Matching Software with Automated Balance Optimization: The Matching package for R," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 42(i07).
    17. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 775-805.
    18. Liu, Shimeng, 2015. "Spillovers from universities: Evidence from the land-grant program," Journal of Urban Economics, Elsevier, vol. 87(C), pages 25-41.
    19. Mora, Ricardo & Reggio, Iliana, 2012. "Treatment effect identification using alternative parallel assumptions," UC3M Working papers. Economics we1233, Universidad Carlos III de Madrid. Departamento de Economía.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rahman, Farzana & Rahman, Md. Mahmudur, 2023. "Analyzing service quality of domestic airlines in an emerging country- Bangladesh by structural equation models," Journal of Air Transport Management, Elsevier, vol. 107(C).
    2. Hidalgo-Gallego, Soraya & Núñez-Sánchez, Ramón, 2023. "The effect of port activity on urban employment: An analysis for the Spanish functional urban areas," Journal of Transport Geography, Elsevier, vol. 108(C).
    3. Mao, Xia & Chen, Xiao, 2023. "Does airport construction narrow regional economic disparities in China?," Journal of Air Transport Management, Elsevier, vol. 108(C).
    4. Sobieralski, Joseph B., 2021. "Transportation infrastructure and employment: Are all investments created equal?," Research in Transportation Economics, Elsevier, vol. 88(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicholas Sheard, 2021. "The network of US airports and its effects on employment," Journal of Regional Science, Wiley Blackwell, vol. 61(3), pages 623-648, June.
    2. Bruno Ferman & Cristine Pinto & Vitor Possebom, 2020. "Cherry Picking with Synthetic Controls," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(2), pages 510-532, March.
    3. Nicholas Sheard, 2019. "Airport Size and Urban Growth," Economica, London School of Economics and Political Science, vol. 86(342), pages 300-335, April.
    4. Lee, Jongkwan, 2021. "The Role of a University in Cluster Formation: Evidence from a National Institute of Science and Technology in Korea," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    5. Lenaerts, Bert & Allroggen, Florian & Malina, Robert, 2021. "The economic impact of aviation: A review on the role of market access," Journal of Air Transport Management, Elsevier, vol. 91(C).
    6. Luisa Doerr & Florian Dorn & Stefanie Gaebler & Niklas Potrafke, 2020. "How new airport infrastructure promotes tourism: evidence from a synthetic control approach in German regions," Regional Studies, Taylor & Francis Journals, vol. 54(10), pages 1402-1412, October.
    7. Kaul, Ashok & Klößner, Stefan & Pfeifer, Gregor & Schieler, Manuel, 2015. "Synthetic Control Methods: Never Use All Pre-Intervention Outcomes Together With Covariates," MPRA Paper 83790, University Library of Munich, Germany.
    8. Talebian, Ahmadreza & Zou, Bo & Hansen, Mark, 2018. "Assessing the impacts of state-supported rail services on local population and employment: A California case study," Transport Policy, Elsevier, vol. 63(C), pages 108-121.
    9. Stephen Gibbons & Wenjie Wu, 2020. "Airports, access and local economic performance: evidence from China [Are Chinese cities too small?]," Journal of Economic Geography, Oxford University Press, vol. 20(4), pages 903-937.
    10. Sobieralski, Joseph B., 2021. "Transportation infrastructure and employment: Are all investments created equal?," Research in Transportation Economics, Elsevier, vol. 88(C).
    11. Carbo, Jose M. & Graham, Daniel J., 2020. "Quantifying the impacts of air transportation on economic productivity: a quasi-experimental causal analysis," Economics of Transportation, Elsevier, vol. 24(C).
    12. Irene Botosaru & Bruno Ferman, 2019. "On the role of covariates in the synthetic control method," The Econometrics Journal, Royal Economic Society, vol. 22(2), pages 117-130.
    13. Giulio Grossi & Marco Mariani & Alessandra Mattei & Patrizia Lattarulo & Ozge Oner, 2020. "Direct and spillover effects of a new tramway line on the commercial vitality of peripheral streets. A synthetic-control approach," Papers 2004.05027, arXiv.org, revised Nov 2023.
    14. Richard Kneller & Danny McGowan, 2019. "The effect of airports on the growth of service exports," Discussion Papers 2019-10, University of Nottingham, GEP.
    15. Tveter, Eivind, 2017. "The effect of airports on regional development: Evidence from the construction of regional airports in Norway," Research in Transportation Economics, Elsevier, vol. 63(C), pages 50-58.
    16. Castillo, Victoria & Figal Garone, Lucas & Maffioli, Alessandro & Salazar, Lina, 2017. "The causal effects of regional industrial policies on employment: A synthetic control approach," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 25-41.
    17. Stephen Gibbons & Wenjie Wu, 2017. "Airports, Market Access and Local Economic Performance: Evidence from China," SERC Discussion Papers 0211, Centre for Economic Performance, LSE.
    18. Philipp Breidenbach, 2020. "Ready for take-off? The economic effects of regional airport expansions in Germany," Regional Studies, Taylor & Francis Journals, vol. 54(8), pages 1084-1097, July.
    19. Yi‐Ting Chen, 2020. "A distributional synthetic control method for policy evaluation," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 35(5), pages 505-525, August.
    20. Florian Mayneris, 2017. "Effets des infrastructures de transport sur le niveau et la localisation des activités économiques," LIDAM Discussion Papers IRES 2017023, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

    More about this item

    Keywords

    Airports; Local labor markets; Transportation; Employment;
    All these keywords.

    JEL classification:

    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • N9 - Economic History - - Regional and Urban History
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

    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:eee:juecon:v:116:y:2020:i:c:s0094119020300115. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622905 .

    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.