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Employment Concentration across US Counties

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  • Marcel Fafchamps
  • Klaus Desmet

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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File URL: http://www.economics.ox.ac.uk/materials/working_papers/paper180.pdf
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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 180.

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Date of creation: 01 Dec 2003
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Handle: RePEc:oxf:wpaper:180

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Keywords: Spatial Distribution; Convergence; Sectoral Employment; US Counties;

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References

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  1. Gerald Carlino & Satyajit Chatterjee, 2001. "Employment deconcentration: a new perspective on America's postwar urban evolution," Working Papers 01-4, Federal Reserve Bank of Philadelphia.
  2. Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers 1586, C.E.P.R. Discussion Papers.
  3. Robert J. Barro, 1989. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
  4. Jonathan Eaton & Zvi Eckstein, 1994. "Cities and Growth: Theory and Evidence from france and Japan," Boston University - Institute for Economic Development 36, Boston University, Institute for Economic Development.
  5. Michael Kremer & Alexei Onatski & James Stock, 2001. "Searching for Prosperity," NBER Working Papers 8250, National Bureau of Economic Research, Inc.
  6. Quah, Danny T, 1997. " Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," Journal of Economic Growth, Springer, vol. 2(1), pages 27-59, March.
  7. Antonio Ciccone, 1998. "Agglomeration-effects in Europe," Economics Working Papers 499, Department of Economics and Business, Universitat Pompeu Fabra, revised Aug 1999.
  8. Durlauf,S.N. & Quah,D.T., 1998. "The new empirics of economic growth," Working papers 3, Wisconsin Madison - Social Systems.
  9. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
  10. 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.
  11. Matthew Higgins & Daniel Levy & Andrew T. Young, 2003. "Growth and Convergence across the US: Evidence from County-Level Data," Working Papers 2003-03, Department of Economics, Bar-Ilan University.
  12. Henderson, J. Vernon, 1991. "Urban Development: Theory, Fact, and Illusion," OUP Catalogue, Oxford University Press, number 9780195069020.
  13. Sala-i-Martin, Xavier, 1994. "Regional Cohesion: Evidence and Theories of Regional Growth and Convergence," CEPR Discussion Papers 1075, C.E.P.R. Discussion Papers.
  14. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
  15. Jan Eeckhout, 2004. "Gibrat's Law for (All) Cities," American Economic Review, American Economic Association, vol. 94(5), pages 1429-1451, December.
  16. Guy Dumais & Glenn Ellison & Edward Glaeser, 1997. "Geographic Concentration as a Dynamic Process," NBER Working Papers 6270, National Bureau of Economic Research, Inc.
  17. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
  18. Quah, Danny T, 1996. " Convergence Empirics across Economies with (Some) Capital Mobility," Journal of Economic Growth, Springer, vol. 1(1), pages 95-124, March.
  19. Quah, Danny, 1993. "Galton's Fallacy and Tests of the Convergence Hypothesis," CEPR Discussion Papers 820, C.E.P.R. Discussion Papers.
  20. John Sutton, 1997. "Gibrat's Legacy," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 40-59, March.
  21. Chatterjee, Satyajit & Carlino, Gerald A., 2001. "Aggregate metropolitan employment growth and the deconcentration of metropolitan employment," Journal of Monetary Economics, Elsevier, vol. 48(3), pages 549-583, December.
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Citations

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Cited by:
  1. 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.
  2. 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).
  3. S├╝dekum, Jens, 2008. "Convergence of the skill composition across German regions," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 148-159, March.
  4. Klaus Desmet & Esteban Rossi-Hansberg, 2007. "Spatial Growth and Industry Age," NBER Working Papers 13302, National Bureau of Economic Research, Inc.
  5. 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.
  6. Fafchamps, Marcel, 2012. "Reprint of development, agglomeration, and the organization of work," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 765-778.
  7. Fafchamps, Marcel, 2012. "Development, agglomeration, and the organization of work," Regional Science and Urban Economics, Elsevier, vol. 42(3), pages 459-472.
  8. Arbia, Giuseppe & Piras, Gianfranco, 2009. "A new class of spatial concentration measures," Computational Statistics & Data Analysis, Elsevier, vol. 53(12), pages 4471-4481, October.
  9. 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.

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