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The Impact Of Specific‐Sector Changes In Employment On Economic Growth, Labor Market Performance And Migration

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  • Harvey Cutler
  • Stephen Davies

Abstract

ABSTRACT It is common in empirical regional economics to use total employment as an explanatory variable while investigating issues such as the level and distribution of income and migration. This paper argues that sector‐specific changes in employment and labor market performance can have different effects on economic growth, the collection of tax revenue, migration, and the level and distribution of household income. As such, it is important to model sectors separately. We find that expansions in employment opportunities for a high‐wage sector such as computer manufacturing or bioengineering, a medium‐wage sector manufacturing, and the lower‐wage sector of retailing have differing economic consequences for a small city. We use a data intensive computable general equilibrium model to obtain these results.

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  • Harvey Cutler & Stephen Davies, 2007. "The Impact Of Specific‐Sector Changes In Employment On Economic Growth, Labor Market Performance And Migration," Journal of Regional Science, Wiley Blackwell, vol. 47(5), pages 935-963, December.
    • Handle: RePEc:bla:jregsc:v:47:y:2007:i:5:p:935-963
    DOI: 10.1111/j.1467-9787.2007.00537.x
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    2. Perry Burnett & Harvey Cutler & Stephen Davies, 2012. "Understanding The Unique Impacts Of Economic Growth Variables," Journal of Regional Science, Wiley Blackwell, vol. 52(3), pages 451-468, August.
    3. Konan, Denise Eby, 2011. "Limits to growth: Tourism and regional labor migration," Economic Modelling, Elsevier, vol. 28(1-2), pages 473-481, January.
    4. Hua Zhong & Michael H. Taylor & Kimberly S. Rollins & Dale T. Manning & Christopher G. Goemans, 2019. "Who pays for water scarcity? Evaluating the welfare implications of water infrastructure investments for cities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(3), pages 559-600, December.
    5. Hess, Joshua H. & Manning, Dale T. & Iverson, Terry & Cutler, Harvey, 2019. "Uncertainty, learning, and local opposition to hydraulic fracturing," Resource and Energy Economics, Elsevier, vol. 55(C), pages 102-123.
    6. Perry Burnett, 2012. "Urban Industrial Composition and the Spatial Expansion of Cities," Land Economics, University of Wisconsin Press, vol. 88(4), pages 764-781.
    7. Burnett, Perry & Cutler, Harvey, 2018. "The transitional impacts of material and service offshoring," Journal of Policy Modeling, Elsevier, vol. 40(1), pages 136-150.
    8. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 379-475, Elsevier.
    9. Jens Abildtrup & Virginie Piguet & Bertrand Schmitt, 2011. "The impact of agro-food industry on employment and population changes: The case of Denmark and France'," ERSA conference papers ersa10p1622, European Regional Science Association.
    10. Mark D. Partridge & Dan S. Rickman, 2012. "Integrating Regional Economic Development Analysis and Land Use Economics," Economics Working Paper Series 1203, Oklahoma State University, Department of Economics and Legal Studies in Business.
    11. Katherine Chalmers & Stephan Weiler, 2011. "Sorting winners and losers: using CGE models to assess income distribution effects of economic development choices," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(1), pages 1-15, March.

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