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Deriving Empirical Definitions of Spatial Labor Markets: The Roles of Competing Vs. Complementary Growth

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  • Khan, Romana
  • Orazem, Peter
  • Otto, Daniel

Abstract

If economic growth elsewhere raises the individual's earning prospects relative to those in the present location, then the individual will move. However, if the individual can exploit the economic growth elsewhere by commuting, he will not need to move to profit from the expansion. County-level data from eight states in the Midwest over the period 1969-1994 are used to show that local county population responds positively to own-county economic growth, economic growth in the adjacent county, and even economic growth two counties away. The magnitude of the effect decreases as distance from the county increases, and turns negative beyond a three county radius. Note: This paper has now been published in the Journal or Regional Science

Suggested Citation

  • Khan, Romana & Orazem, Peter & Otto, Daniel, 1998. "Deriving Empirical Definitions of Spatial Labor Markets: The Roles of Competing Vs. Complementary Growth," Staff General Research Papers Archive 1212, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:1212
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    References listed on IDEAS

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    Cited by:

    1. Hill, Lee Edwin, 1999. "The impact of industry clustering on Iowa manufacturing wages, 1986-1994," ISU General Staff Papers 1999010108000017642, Iowa State University, Department of Economics.
    2. Mduma, John K. & Wobst, Peter, 2005. "Village Level Labor Market Development in Tanzania: Evidence from Spatial Econometrics," Discussion Papers 276260, University of Bonn, Center for Development Research (ZEF).

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