Dynamic Responses to Labor Demand Shocks: Evidence from the Financial Industry in Delaware

Russell Weinstein

No 17-276, Upjohn Working Papers from W.E. Upjohn Institute for Employment Research

Abstract: This paper analyzes an important shock to local labor demand in the financial services sector: firm relocation to Delaware following a Supreme Court ruling and state legislation in the 1908s. Using synthetic controls and bordering states, I find significant effects on employment growth, the unemployment rate, and participation in the first decade. Employment spillovers to the nontradable sector and migration appear larger than estimates from shocks to the tradable sector. Effects persist for 10 to 20 years after Delaware loses its original policy-induced advantage. The shift towards a low unemployment sector explains this persistence, rather than direct productivity effects or agglomeration.

Keywords: Labor demand shocks; regulatory competition; migration; local labor markets (search for similar items in EconPapers)
JEL-codes: G20 J20 R10 (search for similar items in EconPapers)
Date: 2017-05
New Economics Papers: this item is included in nep-geo, nep-lma and nep-ure
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://research.upjohn.org/cgi/viewcontent.cgi?art ... ext=up_workingpapers (application/pdf)
This material is copyrighted. Permission is required to reproduce any or all parts.

Related works:
Journal Article: Dynamic responses to labor demand shocks: Evidence from the financial industry in Delaware (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:upj:weupjo:17-276

Access Statistics for this paper

More papers in Upjohn Working Papers from W.E. Upjohn Institute for Employment Research 300 S. Westnedge Ave. Kalamazoo, MI 49007 USA. Contact information at EDIRC.
Bibliographic data for series maintained by ().