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Who Benefits from Job Creation at County Level? An Analysis of Leakage and Spillover of New Employment Opportunities in Virginia

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  • Xiaobing Shuai

Abstract

Using an econometric model system built on county-level labor market data, this study allocates new employment in Virginia from 1990 to 2000 into: commuters, residents, and new entrants to the labor force (including immigrants). The study finds significant leakage of new employment opportunities in Virginia. Fifty-two percent of new jobs created in the 1990s in a locality were taken by outside commuters. However, Virginia's localities also benefit from spillover benefits from job creation elsewhere. Economists need to account for employment leakage and spillover to accurately evaluate the fiscal impacts of potential economic development projects.

Suggested Citation

  • Xiaobing Shuai, 2010. "Who Benefits from Job Creation at County Level? An Analysis of Leakage and Spillover of New Employment Opportunities in Virginia," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 45(1), pages 38-48, January.
  • Handle: RePEc:pal:buseco:v:45:y:2010:i:1:p:38-48
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    References listed on IDEAS

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    1. Timothy J. Bartik, "undated". "Who Benefits from Local Job Growth: Migrants or Original Residents?," Upjohn Working Papers and Journal Articles tjb1993rs, W.E. Upjohn Institute for Employment Research.
    2. Mitch Renkow, 2003. "Employment Growth, Worker Mobility, and Rural Economic Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 503-513.
    3. Kim S. So & Peter F. Orazem & Daniel M. Otto, 2001. "The Effects of Housing Prices, Wages, and Commuting Time on Joint Residential and Job Location Choices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 1036-1048.
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