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Local multiplier of industrial employment: Brazilian mesoregions (2000-2010)

Author

Listed:
  • Guilherme Macedo
  • Leonardo Monasterio

Abstract

This paper estimates the local multiplier of manufacturing for Brazil (2000-2010). The method is based on Moretti (2010) and on Moretti and Thulin (2012), who estimated these multipliers for the U.S. and Sweden. The local multiplier of manufacturing estimates the impacts of employment changes in the industrial sectors on employment in the services sectors, and the impact of changes in employment in the high-tech and low-tech tradable sectors on employment in the services sectors. These estimates help to assess the importance of industrial employment changes over local economies. We created instrumental variables, based on the shift-share method. The employment data cover 21 economic subsectors and 123 regions in 2000, 2005 and 2010. We have estimated that in the Brazilian mesorregions, for each new job in the tradable sectors, almost four jobs were created locally in the services sectors. Additionally, each job in the high-tech industrial sectors was estimated to create approximately seven jobs in the services sectors over the long term. JEL Classification: J21; J88; R12; R23.

Suggested Citation

  • Guilherme Macedo & Leonardo Monasterio, 2016. "Local multiplier of industrial employment: Brazilian mesoregions (2000-2010)," Brazilian Journal of Political Economy, Center of Political Economy, vol. 36(4), pages 827-839.
    • Handle: RePEc:ekm:repojs:v:36:y:2016:i:4:p:827-839:id:209
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    Citations

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    Cited by:

    1. Roberta Moraes Rocha & Breno Caldas Araújo, 2021. "Local multiplier effect of the tradable sector on the Brazilian labor market," Letters in Spatial and Resource Sciences, Springer, vol. 14(3), pages 269-286, December.
    2. Adamczyk, Willian Boschetti & Monasterio, Leonardo & Fochezatto, Adelar, 2021. "Automation in the future of public sector employment: the case of Brazilian Federal Government," Technology in Society, Elsevier, vol. 67(C).
    3. Milene Simone Tessarin & Carlos Roberto Azzoni, 2022. "Innovation and competitiveness: the regional dimension," Papers in Evolutionary Economic Geography (PEEG) 2227, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2022.

    More about this item

    Keywords

    regional economics; labour market; local multipliers; shift-share;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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