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Understanding employment growth in the recession: the geographic diversity of state rescaling

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  • Yuanshuo Xu
  • Mildred E. Warner

Abstract

We conduct an employment growth model of all US county areas for the mild recession after 9/11 and the Great Recession. We find employment growth is positively related to educational attainment and state centralisation of fiscal responsibility and negatively related to manufacturing employment. We use Geographically Weighted Regression to explore the spatial diversity of responses and find neither theories of the developmental state nor austerity urbanism adequately predict locality response to the recession. State rescaling has shifted redistributive expenditure responsibility down to the local level, crowding out developmental investments and undermining local resilience.

Suggested Citation

  • Yuanshuo Xu & Mildred E. Warner, 2015. "Understanding employment growth in the recession: the geographic diversity of state rescaling," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 359-377.
  • Handle: RePEc:oup:cjrecs:v:8:y:2015:i:2:p:359-377.
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    File URL: http://hdl.handle.net/10.1093/cjres/rsv001
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    References listed on IDEAS

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    Cited by:

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    2. Yuanshuo Xu & Mildred E Warner, 2016. "Does devolution crowd out development? A spatial analysis of US local government fiscal effort," Environment and Planning A, , vol. 48(5), pages 871-890, May.
    3. Ron Martin & Peter Sunley & Peter Tyler, 2015. "Local growth evolutions: recession, resilience and recovery," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(2), pages 141-148.
    4. Mingdou Zhang & Qingbang Wu & Weilu Li & Dongqi Sun & Fei Huang, 2021. "Intensifier of urban economic resilience: Specialized or diversified agglomeration?," PLOS ONE, Public Library of Science, vol. 16(11), pages 1-21, November.
    5. Adelheid Holl, 2018. "Local employment growth patterns and the Great Recession: The case of Spain," Journal of Regional Science, Wiley Blackwell, vol. 58(4), pages 837-863, September.
    6. Austin M Aldag & Yunji Kim & Mildred E Warner, 2019. "Austerity urbanism or pragmatic municipalism? Local government responses to fiscal stress in New York State," Environment and Planning A, , vol. 51(6), pages 1287-1305, September.
    7. D Michael Ray & Ian MacLachlan & Rodolphe Lamarche & KP Srinath, 2017. "Economic shock and regional resilience: Continuity and change in Canada's regional employment structure, 1987–2012," Environment and Planning A, , vol. 49(4), pages 952-973, April.
    8. Yuanshuo Xu & Mildred E. Warner, 2022. "Crowding Out Development: Fiscal Federalism after the Great Recession," Environment and Planning A, , vol. 54(2), pages 311-329, March.

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