IDEAS home Printed from https://ideas.repec.org/a/fip/fedbpb/y2007n07-1.html
   My bibliography  Save this article

Massachusetts employment growth 1996–2006: effects of industry performance and industry composition

Author

Listed:
  • Katharine L. Bradbury
  • Yolanda Kodrzycki

Abstract

This brief examines the effects of industry performance and industry composition on overall changes in Massachusetts employment in the period 1996 to 2006. Through 2000, Massachusetts enjoyed strong economic expansion. Around the time of the nationwide recession of 2001, however, the Massachusetts economy experienced a relatively severe setback, and the state has yet to regain as many jobs in the ensuing expansion as it lost in the downturn. ; The study finds that Massachusetts industries generally experienced slower employment growth than their national counterparts in the early 2000s. The highest-flying industries of the late 1990s did “give back” some of their gains in the early 2000s, but this fact does not explain the Commonwealth’s overall employment trends relative to national trends. Other, lower-growth industries in Massachusetts also underperformed relative to their national counterparts in the early 2000s, and this disparity accounts for almost all of the observed difference between Massachusetts and U.S. employment growth rates during the post-boom period. ; Cutting the data differently to focus on industries that characterize the “innovation economy” in Massachusetts allows a richer interpretation of the post-boom period. The industries in key clusters identified by the Massachusetts Technology Collaborative had declining U.S. employment in the early 2000s. In addition, these industries had steeper employment losses in Massachusetts than in the nation during this period. Thus, the identity of the state’s key industry clusters, as well as the comparatively poor performance of these clusters, helps to account for the weakness of employment trends in Massachusetts compared with national trends since the boom ended.

Suggested Citation

  • Katharine L. Bradbury & Yolanda Kodrzycki, 2007. "Massachusetts employment growth 1996–2006: effects of industry performance and industry composition," Public Policy Brief, Federal Reserve Bank of Boston.
  • Handle: RePEc:fip:fedbpb:y:2007:n:07-1
    as

    Download full text from publisher

    File URL: http://www.bostonfed.org/economic/ppb/2007/ppb071.htm
    Download Restriction: no

    File URL: http://www.bostonfed.org/economic/ppb/2007/ppb071.pdf
    Download Restriction: no

    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:fip:fedbpb:y:2007:n:07-1. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catherine Spozio). General contact details of provider: http://edirc.repec.org/data/frbbous.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.