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Estimating The Community-Level Impacts Of Attracting New Businesses: The Implications Of Local Labor Market Adjustments


  • Barkley, David L.
  • Henry, Mark S.


The purpose of this report is to estimate short-and long-run labor market adjustments associated with employment change for South Carolina counties. An appreciation of the source of employees for new jobs enables community leaders to better select the appropriate level of industrial incentives and to better plan for changes in demand for public goods and services. We provide an overview of the components of a local labor force and the implications of component change on local income and expenditures for public goods and services. Then we present the results of the Clemson University Community Policy Analysis (CPAN) Model for county labor markets. This model estimates the allocation of new jobs in a county among the components of a county's labor force. Third, we summarize the concepts of "job chains" and "leakages" and discuss the relationship between these concepts and community-level impacts. Finally, we conclude with a discussion of how insights into labor market adjustments may be used to improve public policy in community planning and industrial development.

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  • Barkley, David L. & Henry, Mark S., 2002. "Estimating The Community-Level Impacts Of Attracting New Businesses: The Implications Of Local Labor Market Adjustments," REDRL Research Reports 18790, Clemson University, Regional Economic Development Research Laboratory (REDRL).
  • Handle: RePEc:ags:curerr:18790

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    References listed on IDEAS

    1. Daniel Felsenstein & Joseph Persky, 1999. "When is a Cost Really a Benefit? Local Welfare Effects and Employment Creation in the Evaluation of Economic Development Programs," Economic Development Quarterly, , vol. 13(1), pages 46-54, February.
    2. Swenson, David & Eathington, Liesl, 1998. "A Manual for Community and Fiscal Impact Modeling Systems," ISU General Staff Papers 199801010800001024, Iowa State University, Department of Economics.
    3. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
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    Labor and Human Capital;


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