Full Citation

Title: Local Employment Multipliers in U.S. Cities

Citation Type: Working Paper

Publication Year: 2014

ISBN:

ISSN: 1471-0498

DOI:

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Abstract: This paper shows that within a regional economy, employment in the nontradable sector benefits from attracting jobs in the tradable sector. I rework Moretti's study of U.S. cities (AER 2010) and find that one new job in a given city;s tradable sector will result into 1.02 new jobs in the nontradable sector in the same city. I show that Moretti overestimated the size of this local multiple by 0.57, because he made five perfunctory assumptions that had a major impact on his results. Subsequently I show that Moretti's assertion that skilled tradable jobs have a larger multipler than unskilled tradable jobs is not supported by the data. The evidence provided by Moretti was only significant due to an endogeneity effect.

Url: http://www.economics.ox.ac.uk/materials/papers/13625/paper730.pdf

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Authors: van Dijk, J.J.

Series Title:

Publication Number: 730

Institution: University of Oxford

Pages:

Publisher Location: Oxford, England

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Other

Countries: