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Local employment multipliers when living and working areas are different

Woo-Yung Kim and Sung Hyo Hong

Economics Letters, 2019, vol. 175, issue C, 47-50

Abstract: This study estimates the local employment multiplier for the case of Korea by using two distinct geographic units of analyses: working vs. living areas. Empirical results show that the estimates based on residential areas are relatively larger. From IV results, each additional job in the manufacturing sector seems to locally create 1.5 jobs in the service sector. It is smaller than those for US but larger than those for Swedish case.

Keywords: Local labor market; Employment multiplier; Residential area (search for similar items in EconPapers)
JEL-codes: F16 R15 R23 (search for similar items in EconPapers)
Date: 2019
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Handle: RePEc:eee:ecolet:v:175:y:2019:i:c:p:47-50