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Employment Concentration Across US Counties

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  • Desmet, Klaus
  • Fafchamps, Marcel

Abstract

This Paper examines the spatial distribution of jobs across US counties and investigates whether sectoral employment is becoming more or less concentrated. The existing literature has found deconcentration (convergence) of employment across urban areas. Cities only cover a small part of the US though. Using county data, our results indicate that deconcentration is limited to the upper tail of the distribution. The overall picture is one of increasing concentration (divergence). While this seemingly contradicts the well-documented deconcentration in manufacturing, we show that these aggregate employment dynamics are driven by services. Non-service sectors – such as manufacturing and farming – are indeed becoming more equally spread across space, but services are becoming increasingly concentrated.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4689.

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Date of creation: Oct 2004
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Handle: RePEc:cpr:ceprdp:4689

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Keywords: economic geography; ergodic distribution; spatial distribution of employment; US counties;

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References

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  1. Michael Kremer & Alexei Onatski & James Stock, 2001. "Searching for Prosperity," NBER Working Papers 8250, National Bureau of Economic Research, Inc.
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  19. Desmet, Klaus & Fafchamps, Marcel, 2003. "What are Falling Transport Costs doing to Spatial Concentration Across US Counties?," CEPR Discussion Papers 3853, C.E.P.R. Discussion Papers.
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Citations

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Cited by:
  1. Desmet, Klaus & Rossi-Hansberg, Esteban, 2009. "Spatial growth and industry age," Journal of Economic Theory, Elsevier, vol. 144(6), pages 2477-2502, November.
  2. Gordon Mulligan & Mark Partridge & John Carruthers, 2012. "Central place theory and its reemergence in regional science," The Annals of Regional Science, Springer, vol. 48(2), pages 405-431, April.
  3. Stark, Oded & Fan, C. Simon, 2007. "Rural-to-Urban Migration, Human Capital, and Agglomeration," Discussion Papers 7116, University of Bonn, Center for Development Research (ZEF).
  4. Giulio Bottazzi & Ugo Gragnolati & Fabio Vanni, 2014. "A numerical estimation method for discrete choice models with non-linear externalities," LEM Papers Series 2014/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  5. Südekum, Jens, 2008. "Convergence of the skill composition across German regions," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 148-159, March.
  6. Arbia, Giuseppe & Piras, Gianfranco, 2009. "A new class of spatial concentration measures," Computational Statistics & Data Analysis, Elsevier, vol. 53(12), pages 4471-4481, October.
  7. Fafchamps, Marcel, 2012. "Reprint of development, agglomeration, and the organization of work," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 765-778.
  8. Jenifer Ruiz-Valenzuela & Rosina Moreno-Serrano & Esther Vaya-Valcarce, 2007. "Has concentration evolved similarly in manufacturing and services? A sensitivity analysis," IREA Working Papers 200708, University of Barcelona, Research Institute of Applied Economics, revised Apr 2007.
  9. Fafchamps, Marcel, 2012. "Development, agglomeration, and the organization of work," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 459-472.

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