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Does "Trickle Down" Work? Economic Development and Job Chains in Local Labor Markets

Author

Listed:
  • Joseph Persky

    (University of Illinois at Chicago)

  • Daniel Felsenstein

    (Hebrew University of Jerusalem)

  • Virginia Carlson

    (University of Wisconsin-Milwaukee)

Abstract

Persky, Felsenstein, and Carlson explore a new framework for evaluating state and local economic development efforts. They propose a method, referred to as the "job-chains approach," that they say clarifies the potential justifications for economic development subsidies as well as the limitations surrounding these efforts. This innovative approach addresses not only the number of job vacancies created as a result of a subsidized business investment or expansion, but also the extent to which gains are achieved by the unemployed and the underemployed, whether skilled or unskilled.

Suggested Citation

  • Joseph Persky & Daniel Felsenstein & Virginia Carlson, 2004. "Does "Trickle Down" Work? Economic Development and Job Chains in Local Labor Markets," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number dtdw, August.
    • Handle: RePEc:upj:ubooks:dtdw
    Note: PDF is the book's first chapter.
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    Citations

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    Cited by:

    1. Stuart Andreason, 2015. "Leading, lagging, and left behind: identifying metropolitan leaders and labor market outcomes," FRB Atlanta Community and Economic Development Discussion Paper 2015-4, Federal Reserve Bank of Atlanta.
    2. Joseph Persky & Daniel Felsenstein, 2008. "Job Chains And Wage Curves: Worker Mobility And Marshallian Surpluses In Evaluating Regional Employment Growth," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 921-940, December.
    3. Thomas E. Lambert & Gary A. Mattson & Kyle Dorriere, 2017. "The impact of growth and innovation clusters on unemployment in US metro regions," Regional Science Policy & Practice, Wiley Blackwell, vol. 9(1), pages 25-37, March.
    4. Joseph Persky & Daniel Felsenstein, 2006. "Restricting access in a job chains model of local employment creation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(2), pages 423-435, June.
    5. Stephan J Goetz & Mark D Partridge & Dan S Rickman & Shibalee Majumdar, 2011. "Sharing the Gains of Local Economic Growth: Race-to-the-Top versus Race-to-the-Bottom Economic Development," Environment and Planning C, , vol. 29(3), pages 428-456, June.
    6. Timothy J. Bartik, 2020. "Using Place-Based Jobs Policies to Help Distressed Communities," Journal of Economic Perspectives, American Economic Association, vol. 34(3), pages 99-127, Summer.
    7. Lindgren, Petter Y. & Presterud, Ane Ofstad, 2021. "Expanding the Norwegian Armed Forces in the Time of Corona: Benefit-Cost Analysis in the Context of High Unemployment Rate," MPRA Paper 106405, University Library of Munich, Germany.
    8. Timothy J. Bartik, 2012. "The Future of State and Local Economic Development Policy: What Research Is Needed," Growth and Change, Wiley Blackwell, vol. 43(4), pages 545-562, December.
    9. Ashish Goel & L.S. Ganesh & Arshinder Kaur, 2020. "Benefits Formulation in Construction Projects: An Exploratory Study through a Social Sustainability Perspective," IIM Kozhikode Society & Management Review, , vol. 9(2), pages 162-176, July.
    10. Laura Wolf-Powers, 2012. "Human-capital-centred Regionalism in Economic Development: A Case of Analytics Outpacing Institutions?," Urban Studies, Urban Studies Journal Limited, vol. 49(15), pages 3427-3446, November.
    11. Allison Forbes, 2018. "A Measure of Interdependence: Skill in the Supply Chain," Economic Development Quarterly, , vol. 32(4), pages 326-340, November.
    12. Lambert, Thomas & Mattson, Gary & Dorriere, Kyle, 2016. "Industry Clustering and Unemployment in US Regions: An Exploratory Note," MPRA Paper 69584, University Library of Munich, Germany.
    13. Ståle Holgersen & Guy Baeten, 2016. "Beyond a Liberal Critique of ‘Trickle Down': Urban Planning in the City of Malmö," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 40(6), pages 1170-1185, November.
    14. Thakuriah (Vonu), Piyushimita & Persky, Joseph & Soot, Siim & Sriraj, P.S., 2013. "Costs and benefits of employment transportation for low-wage workers: An assessment of job access public transportation services," Evaluation and Program Planning, Elsevier, vol. 37(C), pages 31-42.
    15. Jia Wang & Stephen E. Ellis & Cynthia Rogers, 2018. "Income Inequality and Economic Development Incentives in US States: Robin Hood in Reverse?," The Review of Regional Studies, Southern Regional Science Association, vol. 48(1), pages 93-117, Spring.
    16. Joseph Persky & Daniel Felsenstein, 2008. "Multipliers, Markups, and Mobility Rents: In Defense of ‘Chain Models’ in Urban and Regional Analysis," Environment and Planning A, , vol. 40(12), pages 2933-2947, December.
    17. Mark D. Partridge & Dan S. Rickman, 2008. "Does a Rising Tide Lift All Metropolitan Boats? Assessing Poverty Dynamics by Metropolitan Size and County Type," Growth and Change, Wiley Blackwell, vol. 39(2), pages 283-312, June.
    18. Geoffrey Hewings & John Parr, 2007. "Spatial Interdependence in a Metropolitan Setting," Spatial Economic Analysis, Taylor & Francis Journals, vol. 2(1), pages 7-22.
    19. George A. Erickcek, 2019. "Earnings and Career Advancement Possibilities for Low-Wage Workers," Economic Development Quarterly, , vol. 33(2), pages 71-75, May.
    20. Marla Nelson & Laura Wolf-Powers, 2010. "Chains and Ladders: Exploring the Opportunities for Workforce Development and Poverty Reduction in the Hospital Sector," Economic Development Quarterly, , vol. 24(1), pages 33-44, February.
    21. Persky, Joseph J. & Baiman, Ron, 2010. "Do State Minimum Wage Laws Reduce Employment? Mixed Messages from Fast Food Outlets in Illinois and Indiana," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(2), pages 1-11.

    More about this item

    Keywords

    job chains; labor mobility; business subsidies; tax incentives; low-wage workers;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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