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Recalculating ... : How Uncertainty in Local Labour Market Definitions Affects Empirical Findings

Author

Listed:
  • Andrew Foote
  • Mark J. Kutzbach
  • Lars Vilhuber

Abstract

This paper evaluates the use of commuting zones as a local labour market definition. We revisit the seminal paper by Tolbert and Sizer and demonstrate the sensitivity of definitions to two features of the methodology: a cluster dissimilarity cut-off, or the count of clusters, and uncertainty in the input data. We show how these features impact empirical estimates using a standard application of commuting zones and an example from related literature. We conclude with advice to researchers on how to demonstrate the robustness of empirical findings to uncertainty in the definition of commuting zones.

Suggested Citation

  • Andrew Foote & Mark J. Kutzbach & Lars Vilhuber, 2021. "Recalculating ... : How Uncertainty in Local Labour Market Definitions Affects Empirical Findings," Applied Economics, Taylor & Francis Journals, vol. 53(14), pages 1598-1612, March.
    • Handle: RePEc:taf:applec:v:53:y:2021:i:14:p:1598-1612
    DOI: 10.1080/00036846.2020.1841083
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    Cited by:

    1. Veronica Minaya & Brendan Moore & Judith Scott-Clayton, 2020. "The Effect of Job Displacement on College Enrollment: Evidence from Ohio," NBER Working Papers 27694, National Bureau of Economic Research, Inc.
    2. Mike Zabek, 2024. "Local Ties in Spatial Equilibrium," American Economic Journal: Macroeconomics, American Economic Association, vol. 16(2), pages 287-317, April.
    3. Ben Lipsius, 2018. "Labor Market Concentration does not Explain the Falling Labor Share," 2018 Papers pli1202, Job Market Papers.
    4. Jordy Meekes & Wolter H. J. Hassink, 2023. "Endogenous local labour markets, regional aggregation and agglomeration economies," Regional Studies, Taylor & Francis Journals, vol. 57(1), pages 13-25, January.
    5. Christopher S Fowler & Leif Jensen, 2020. "Bridging the gap between geographic concept and the data we have: The case of labor markets in the USA," Environment and Planning A, , vol. 52(7), pages 1395-1414, October.
    6. Jessica H. Brown, 2018. "Does Public Pre-K Have Unintended Consequences on the Child Care Market for Infants and Toddlers?," Working Papers 626, Princeton University, Department of Economics, Industrial Relations Section..
    7. Craig Wesley Carpenter & Michael C Lotspeich-Yadao & Charles M Tolbert, 2022. "When to use commuting zones? An empirical description of spatial autocorrelation in U.S. counties versus commuting zones," PLOS ONE, Public Library of Science, vol. 17(7), pages 1-14, July.
    8. Andrea Batch & Benjamin Bridgman & Abe Dunn & Mahsa Gholizadeh, 2025. "Consumption zones," Journal of Economic Geography, Oxford University Press, vol. 25(2), pages 191-213.
      • Andrea Batch & Benjamin R. Bridgman & Abe C. Dunn & Mahsa Gholizadeh, 2023. "Consumption Zones," BEA Papers 0114, Bureau of Economic Analysis.
    9. Daisuke ADACHI & Taiyo FUKAI & Daiji KAWAGUCHI & Yukiko SAITO, 2020. "Commuting Zones in Japan," Discussion papers 20021, Research Institute of Economy, Trade and Industry (RIETI).
    10. Brad Hershbein & Bryan A. Stuart, 2024. "The Evolution of Local Labor Markets after Recessions," American Economic Journal: Applied Economics, American Economic Association, vol. 16(3), pages 399-435, July.
    11. repec:bea:wpaper:0208 is not listed on IDEAS
    12. James Bishop & Emma Greenland, 2021. "Is the Phillips Curve Still a Curve? Evidence from the Regions," RBA Research Discussion Papers rdp2021-09, Reserve Bank of Australia.
    13. Brad J. Hershbein & Bryan A. Stuart, 2020. "Recessions and Local Labor Market Hysteresis," Upjohn Working Papers 20-325, W.E. Upjohn Institute for Employment Research.
    14. Zhang, Whitney, 2022. "Improving commuting zones using the Louvain community detection algorithm," Economics Letters, Elsevier, vol. 219(C).
    15. Rappaport, Jordan & Humann, McKenzie, 2025. "A better delineation of U.S. metropolitan areas," Journal of Urban Economics, Elsevier, vol. 149(C).

    More about this item

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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