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Job Chains And Wage Curves: Worker Mobility And Marshallian Surpluses In Evaluating Regional Employment Growth

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  • Joseph Persky
  • Daniel Felsenstein

Abstract

ABSTRACT In theory, new regional jobs yield two distinct sources of welfare gains to workers: (1) mobility gains achieved by workers as they move up job chains and (2) traditional Marshallian surpluses enjoyed by all workers as labor markets tighten. In the past, we have argued that the second channel is likely to be small relative to the first. This paper integrates a chain model (using PSID job change data) with a modified‐Marshallian model based on “wage curves” (estimated from CPS data) to formalize and test that argument. High wage jobs with modest wage–unemployment elasticities show Marshallian effects only 10 percent to 20 percent the size of mobility effects. Low wage jobs with somewhat higher elasticities show Marshallian effects from 40 percent to 70 percent the size of mobility effects.

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  • Joseph Persky & Daniel Felsenstein, 2008. "Job Chains And Wage Curves: Worker Mobility And Marshallian Surpluses In Evaluating Regional Employment Growth," Journal of Regional Science, Wiley Blackwell, vol. 48(5), pages 921-940, December.
    • Handle: RePEc:bla:jregsc:v:48:y:2008:i:5:p:921-940
    DOI: 10.1111/j.1467-9787.2008.00581.x
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    References listed on IDEAS

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    2. Partridge, Mark & Betz, Mike, 2012. "Country Road Take Me Home: Migration Patterns in the Appalachia America and Place-Based Policy," MPRA Paper 38293, University Library of Munich, Germany.
    3. Michael R. Betz & Mark D. Partridge, 2013. "Country Road Take Me Home," International Regional Science Review, , vol. 36(3), pages 267-295, July.
    4. Daniel Felsenstein & Joseph Persky, 2011. "Gender and Job Chains in Local Economic Development," Economic Development Quarterly, , vol. 25(2), pages 172-181, May.
    5. Thakuriah (Vonu), Piyushimita & Persky, Joseph & Soot, Siim & Sriraj, P.S., 2013. "Costs and benefits of employment transportation for low-wage workers: An assessment of job access public transportation services," Evaluation and Program Planning, Elsevier, vol. 37(C), pages 31-42.

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