IDEAS home Printed from https://ideas.repec.org/a/eee/streco/v76y2026icp20-43.html

Economic complexity and local employment multipliers

Author

Listed:
  • Queiroz, Arthur Ribeiro
  • Freitas, Elton Eduardo
  • Romero, João Prates

Abstract

The objective of this paper is to assess the heterogeneity of employment multipliers between regions and sectors of distinct complexity levels, segmenting regions into four complexity levels and the economy into two sectors: complex and non-complex. Formal labor market data from 558 Brazilian micro-regions in three time points (2009, 2014 and 2019) were used in the investigation. Potential endogeneity was addressed by employing shift-share instrumental variables.. In less complex regions, the complex sector exhibits statistically weaker effects on both the non-complex sector and on itself, while the strongest positive impacts on employment arise from the non-complex sector’s self-multiplication, ranging from 0.92 to 1.8. In more complex regions, the complex sector presents the highest employment multiplier, generating between 1.06 and 1.43 jobs within itself and between 1.71 and 3.25 jobs in the non-complex sector.

Suggested Citation

  • Queiroz, Arthur Ribeiro & Freitas, Elton Eduardo & Romero, João Prates, 2026. "Economic complexity and local employment multipliers," Structural Change and Economic Dynamics, Elsevier, vol. 76(C), pages 20-43.
    • Handle: RePEc:eee:streco:v:76:y:2026:i:c:p:20-43
    DOI: 10.1016/j.strueco.2025.11.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X25001870
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.strueco.2025.11.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:streco:v:76:y:2026:i:c:p:20-43. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/525148 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.