Who Benefits from Job Creation at County Level? An Analysis of Leakage and Spillover of New Employment Opportunities in Virginia

Xiaobing Shuai

Business Economics, 2010, vol. 45, issue 1, 38-48

Abstract: Using an econometric model system built on county-level labor market data, this study allocates new employment in Virginia from 1990 to 2000 into: commuters, residents, and new entrants to the labor force (including immigrants). The study finds significant leakage of new employment opportunities in Virginia. Fifty-two percent of new jobs created in the 1990s in a locality were taken by outside commuters. However, Virginia's localities also benefit from spillover benefits from job creation elsewhere. Economists need to account for employment leakage and spillover to accurately evaluate the fiscal impacts of potential economic development projects.

Date: 2010
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