Accessibility, Diversity, Environmental Quality and the Dynamics of Intra‐Urban Population and Employment Location

This paper investigates intra‐urban population and employment shifts over 1980–2000, using the Cincinnati Metropolitan Area as a case study. Population and employment are disaggregated by ethnicity (White, Black, Others) and industry (10 sectors) to better capture different location behaviors. Inter‐industry relationships are considered when constructing accessibility variables. Additional diversity, locational and socio‐economic variables are included. A location‐specific index of air quality is also considered, as a proxy for environmental quality. A structural equation model is specified to account for the dynamic interactions between populations, activities, and air quality. The results reveal strong interactions between ethnic groups, confirm the existence of agglomeration effects, and suggest that diversity has positive effects on both firms and households in both periods (1980–1990 and 1990–2000). For firms, better access to their potential customers and employees is more important than better access to their input–output sectors. Better air quality attracts population, which in turn worsens it. The results reveal changing dynamics, from 1980–1990 to 1990–2000, for different population and activity groups, and suggest that overall, firm location behaviors are more stable than household behaviors.