 Regional Labor Markets: The Relationship Between Industry Level Employment and In-commuting in Pennsylvania CountiesMartin Shields and David Swenson Journal of Regional Analysis and Policy, 2000, vol. 30, issue 2, 14 Abstract: Hoping to generate employment opportunities for residents, communities often offer location incentives to businesses. But many newly created jobs may go to commuters rather than local residents, resulting in higher incentive costs per local job than perhaps anticipated. In this paper we examine the allocation of employment across space, emphasizing the propensity of commuters to “capture” jobs. Central to our work is an industry-level model of incommuting, where commuters balance employment and wage opportunities with relative housing prices and travel costs. Using data from 65 Pennsylvania counties, our empirical results suggest that the proportion of jobs filled by in-commuters varies by industry, ranging from 0.036 (farming) to 0.498 (federal government). Thus communities courting employers should recognize that local benefits of employment growth might depend on the industry. Furthermore, when recruiting industries where there is a high propensity to commute, communities should pursue regional agreements when offering incentives so as to internalize some of the spillover effects. Keywords: Industrial Organization; Labor and Human Capital (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ags:jrapmc:132179 Access Statistics for this article More articles in Journal of Regional Analysis and Policy from Mid-Continent Regional Science Association Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.