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The Impact Of Specific-Sector Changes In Employment On Economic Growth, Labor Market Performance And Migration

  • Harvey Cutler
  • Stephen Davies

It is common in empirical regional economics to use total employment as an explanatory variable while investigating issues such as the level and distribution of income and migration. This paper argues that sector-specific changes in employment and labor market performance can have different effects on economic growth, the collection of tax revenue, migration, and the level and distribution of household income. As such, it is important to model sectors separately. We find that expansions in employment opportunities for a high-wage sector such as computer manufacturing or bioengineering, a medium-wage sector manufacturing, and the lower-wage sector of retailing have differing economic consequences for a small city. We use a data intensive computable general equilibrium model to obtain these results. Copyright Blackwell Publishing, Inc. 2007

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Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 47 (2007)
Issue (Month): 5 ()
Pages: 935-963

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Handle: RePEc:bla:jregsc:v:47:y:2007:i:5:p:935-963
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  1. Malpezzi, Stephen & Maclennan, Duncan, 2001. "The Long-Run Price Elasticity of Supply of New Residential Construction in the United States and the United Kingdom," Journal of Housing Economics, Elsevier, vol. 10(3), pages 278-306, September.
  2. Partridge, Mark D. & Rickman, Dan S., 2003. "The waxing and waning of regional economies: the chicken-egg question of jobs versus people," Journal of Urban Economics, Elsevier, vol. 53(1), pages 76-97, January.
  3. Greenwood, Michael J & Hunt, Gary L, 1984. "Migration and Interregional Employment Redistribution in the United States," American Economic Review, American Economic Association, vol. 74(5), pages 957-69, December.
  4. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
  5. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
  6. Levernier, William & Partridge, Mark D. & Rickman, Dan S., 1998. "Differences in Metropolitan and Nonmetropolitan U.S. Family Income Inequality: A Cross-County Comparison," Journal of Urban Economics, Elsevier, vol. 44(2), pages 272-290, September.
  7. Vijay K. Mathur & Frank M. Song, 2000. "A labor market based theory of regional economic development," The Annals of Regional Science, Springer, vol. 34(1), pages 131-145.
  8. Donald G. Freeman, 2001. "Sources of fluctuations in regional growth," The Annals of Regional Science, Springer, vol. 35(2), pages 249-266.
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