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Job vacancy chains in metropolitan labor markets

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  • Felsenstein, Daniel
  • Persky, Joseph
  • Carlson, Virginia

Abstract

Metropolitan Labor markets are characterized by gross flows, much larger than the traditional net measures of employment change might suggest. Standard impact analyses of employment change tend to either ignore these flows or treat them as a matter of 'job churning'. But in a metropolitan area experiencing involuntary unemployment and underemployment, these flows may offer real opportunities for individuals to improve their employment positions. Such improvement occurs along 'job chains' in which a new vacancy opens a sequence of job changes allowing workers to move closer to their full employment wage. Not all chains are of the same length, nor does every chain produce the same welfare gain. This paper presents a model of job chaims which addresses chain length, welfare gains and distributional effects. The application of the model is illustrated using a hypothetical case of a new manufacturing firm in the Chicago metropolitan area. The job chains approach to estimating multiplier, efficiency and distributional effects associated with the firm, is compared with conventional impact analysis estimates. The conclusions discuss the implications of these estimates for the evaluation of local economic development projects.

Suggested Citation

  • Felsenstein, Daniel & Persky, Joseph & Carlson, Virginia, 2002. "Job vacancy chains in metropolitan labor markets," ERSA conference papers ersa02p088, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa02p088
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    References listed on IDEAS

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    2. Courant, Paul N., 1994. "How Would You Know a Good Economic Policy If You Tripped Over One? Hint: Don't Just Count Jobs," National Tax Journal, National Tax Association, vol. 47(4), pages 863-81, December.
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    6. B T Robson & M G Bradford & I A Deas, 1999. "Beyond the Boundaries: Vacancy Chains and the Evaluation of Urban Development Corporations," Environment and Planning A, , vol. 31(4), pages 647-664, April.
    7. Courant, Paul N., 1994. "How Would You Know a Good Economic Policy if You Tripped Over One? Hint: Don't Just Count Jobs," National Tax Journal, National Tax Association;National Tax Journal, vol. 47(4), pages 863-881, December.
    8. 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.
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    Cited by:

    1. Antonis Targoutzidis, 2018. "Some adjustments to the human capital and the friction cost methods," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(9), pages 1225-1228, December.
    2. Carlo Gianelle & Giuseppe Tattara, 2014. "Vacancy chains and the business cycle. Stringing together job-to-job transitions in micro data," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(8), pages 1212-1235, October.

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