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Local employment multipliers in U.S. cities

Author

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  • Jasper Jacob van Dijk

Abstract

In this article, I show that within a U.S. city there is a significant effect of a permanent shock to employment in the tradable sector on employment in the non-tradable sector. I find that each additional job in the tradable sector will result in between 1.6 and 1.7 new jobs in the non-tradable sector. This result is robust to the specification of sector growth in the regression model. When I split the tradable sector into high- and low-wage workers, I find a larger multiplier of 2.0–2.3 for high-wage workers and no significant multiplier for low-wage workers.

Suggested Citation

  • Jasper Jacob van Dijk, 2017. "Local employment multipliers in U.S. cities," Journal of Economic Geography, Oxford University Press, vol. 17(2), pages 465-487.
    • Handle: RePEc:oup:jecgeo:v:17:y:2017:i:2:p:465-487.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbw010
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    Citations

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    Cited by:

    1. Augusto Cerqua & Guido Pellegrini, 2020. "Local multipliers at work [Local development that money cannot buy: Italy’s Contratti di Programma]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(4), pages 959-977.
    2. Stephan Maurer & Ferdinand Rauch, 2023. "Economic geography aspects of the Panama Canal," Oxford Economic Papers, Oxford University Press, vol. 75(1), pages 142-162.
    3. Faggio, G. & Schluter, T. & vom Berge, P., 2019. "Interaction of Public and Private Employment: Evidence from a German Government Move," Working Papers 19/09, Department of Economics, City University London.
    4. Freedman, Matthew & Khanna, Shantanu & Neumark, David, 2023. "Combining rules and discretion in economic development policy: Evidence on the impacts of the California Competes Tax Credit," Journal of Public Economics, Elsevier, vol. 217(C).
    5. Viviana Celli & Augusto Cerqua & Guido Pellegrini, 2023. "The long-term effects of mass layoffs: do local economies (ever) recover?," Journal of Economic Geography, Oxford University Press, vol. 23(5), pages 1121-1144.
    6. Doris Kwon & Olav Sorenson, 2023. "The Silicon Valley Syndrome," Entrepreneurship Theory and Practice, , vol. 47(2), pages 344-368, March.
    7. Wang, Ting & Chanda, Areendam, 2018. "Manufacturing growth and local employment multipliers in China," Journal of Comparative Economics, Elsevier, vol. 46(2), pages 515-543.
    8. Kemeny, Tom & Osman, Taner, 2018. "The wider impacts of high-technology employment: Evidence from U.S. cities," Research Policy, Elsevier, vol. 47(9), pages 1729-1740.
    9. Lee, Neil & Clarke, Stephen, 2019. "Do low-skilled workers gain from high-tech employment growth? High-technology multipliers, employment and wages in Britain," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    10. Jaehyuk Park & Morgan R. Frank & Lijun Sun & Hyejin Youn, 2020. "Industrial Topics in Urban Labor System," Papers 2009.09799, arXiv.org.
    11. Taner Osman & Tom Kemeny, 2022. "Local job multipliers revisited," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 150-170, January.

    More about this item

    Keywords

    Local labour market; multiplier; tradable; non-tradable;
    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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