Local employment multipliers in U.S. cities

Jasper Jacob van Dijk

Journal of Economic Geography, 2017, vol. 17, issue 2, 465-487

Abstract: In this article, I show that within a U.S. city there is a significant effect of a permanent shock to employment in the tradable sector on employment in the non-tradable sector. I find that each additional job in the tradable sector will result in between 1.6 and 1.7 new jobs in the non-tradable sector. This result is robust to the specification of sector growth in the regression model. When I split the tradable sector into high- and low-wage workers, I find a larger multiplier of 2.0–2.3 for high-wage workers and no significant multiplier for low-wage workers.

Keywords: Local labour market; multiplier; tradable; non-tradable (search for similar items in EconPapers)
JEL-codes: F16 R15 R23 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (20)

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