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Measuring Labor Market Similarities in Nearby Regions

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  • Leila Bengali
  • Cheikh Fall

Abstract

Labor market conditions are similar in regions that are near each other. This is called positive spatial correlation. Analyzing county-level data from 1990 to 2024 shows that commuting flows may contribute to strong spatial correlation in employment growth. Spatial correlation appears to have strengthened since the 1990s, at the same time as more workers were commuting across county lines. As these connections grow through commuting flows, both favorable and challenging conditions in local economies may become more likely to spread farther than in the past.

Suggested Citation

  • Leila Bengali & Cheikh Fall, 2025. "Measuring Labor Market Similarities in Nearby Regions," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2025(24), pages 1-6, October.
    • Handle: RePEc:fip:fedfel:101932
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