IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v40y2008i12p2933-2947.html
   My bibliography  Save this article

Multipliers, Markups, and Mobility Rents: In Defense of ‘Chain Models’ in Urban and Regional Analysis

Author

Listed:
  • Joseph Persky

    (Department of Economics, University of Illinois at Chicago (M/C 144), 601 South Morgan Street, Chicago, IL 60607, USA)

  • Daniel Felsenstein

    (Department of Geography, Hebrew University of Jerusalem, Mount Scopus, Jerusalem, Israel)

Abstract

Social scientists have long used ‘chain’ metaphors, yet their methodological justification remains somewhat hazy. This paper offers a rationale for using chains to measure changes in economic welfare in urban and regional contexts. In contrast to the Marshallian surplus, which well describes situations in which price changes generate rents in a single market, chains are especially useful in markets where changes lead to the transmission of demand or supply through a series of markets characterized by sticky prices and markups. This argument is illustrated by reference to chain-driven analyses of local production, labor, and housing markets. The institutional structures that underpin chain models are stressed.

Suggested Citation

  • Joseph Persky & Daniel Felsenstein, 2008. "Multipliers, Markups, and Mobility Rents: In Defense of ‘Chain Models’ in Urban and Regional Analysis," Environment and Planning A, , vol. 40(12), pages 2933-2947, December.
    • Handle: RePEc:sae:envira:v:40:y:2008:i:12:p:2933-2947
    DOI: 10.1068/a4027
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a4027
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a4027?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Paul Greenhalgh & Mary Lou Downie & Peter Fisher & Mike Barke, 2003. "Grease to the Wheel or a Spanner in the Works? An Investigation of Office and Industrial Occupier Displacement and Property Market Filtering in Tyne and Wear Using the Chaining Technique," Regional Studies, Taylor & Francis Journals, vol. 37(4), pages 381-394.
    2. Dickens, William T & Lang, Kevin, 1985. "A Test of Dual Labor Market Theory," American Economic Review, American Economic Association, vol. 75(4), pages 792-805, September.
    3. George A. Akerlof & Andrew K. Rose & Janet L. Yellen, 1988. "Job Switching and Job Satisfaction in the U.S. Labor Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 495-594.
    4. Charles Holt & Martin David, 1966. "The Concept of Job Vacancies in a Dynamic Theory of the Labor Market," NBER Chapters, in: The Measurement and Interpretation of Job Vacancies, pages 73-110, National Bureau of Economic Research, Inc.
    5. Joseph Persky & Daniel Felsenstein & Virginia Carlson, 2004. "Does "Trickle Down" Work? Economic Development and Job Chains in Local Labor Markets," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number dtdw.
    6. Julie Phillips & Douglas Massey, 1999. "The new labor market: Immigrants and wages after IRCA," Demography, Springer;Population Association of America (PAA), vol. 36(2), pages 233-246, May.
    7. William T. Dickens & Kevin Lang, 1985. "Testing Dual Labor Market Theory: A Reconsideration of the Evidence," NBER Working Papers 1670, National Bureau of Economic Research, Inc.
    8. Daniel Felsenstein & Joseph Persky, 1999. "When is a Cost Really a Benefit? Local Welfare Effects and Employment Creation in the Evaluation of Economic Development Programs," Economic Development Quarterly, , vol. 13(1), pages 46-54, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Felsenstein, Daniel & Persky, Joseph & Carlson, Virginia, 2002. "Job vacancy chains in metropolitan labor markets," ERSA conference papers ersa02p088, European Regional Science Association.
    2. Pierre‐Richard Agénor, 2004. "Macroeconomic Adjustment and the Poor: Analytical Issues and Cross‐Country Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 18(3), pages 351-408, July.
    3. Leonard, Jonathan S., 1987. "Technological Change and the Extent of Frictional and Structural Unemployment," Institute for Research on Labor and Employment, Working Paper Series qt9538f3v2, Institute of Industrial Relations, UC Berkeley.
    4. Anne Perrot & André Zylberberg, 1989. "Salaire d'efficience et dualisme du marché du travail," Revue Économique, Programme National Persée, vol. 40(1), pages 5-20.
    5. repec:zbw:ifwkwp:1309 is not listed on IDEAS
    6. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    7. Merkl, Christian & Snower, Dennis J., 2008. "Escaping the unemployment trap: The case of East Germany," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 542-556, December.
    8. Stewart, Mark B, 1990. "Union Wage Differentials, Product Market Influences and the Division of Rents," Economic Journal, Royal Economic Society, vol. 100(403), pages 1122-1137, December.
    9. Binnur Balkan & Semih Tumen, 2016. "Firm-Size Wage Gaps along the Formal-Informal Divide: Theory and Evidence," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(2), pages 235-266, April.
    10. Yannick Kalantzis & Ryo Kambayashi & Sébastien Lechevalier, 2012. "Wage and Productivity Differentials in Japan: The Role of Labor Market Mechanisms," LABOUR, CEIS, vol. 26(4), pages 514-541, December.
    11. Dossè Mawussi DJAHINI-AFAWOUBO, 2023. "Niveau d’éducation et probabilité d’être employé dans le secteur informel au Togo," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 57, pages 29-48.
    12. Diego Daruich & Sabrina Di Addario & Raffaele Saggio, 2023. "The Effects of Partial Employment Protection Reforms: Evidence from Italy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(6), pages 2880-2942.
    13. Mohammad Ashraf, 2007. "Factors Affecting Female Employment In Male‐Dominated Occupations: Evidence From The 1990 And 2000 Census Data," Contemporary Economic Policy, Western Economic Association International, vol. 25(1), pages 119-130, January.
    14. Bargain, Olivier & Etienne, Audrey & Melly, Blaise, 2021. "Informal pay gaps in good and bad times: Evidence from Russia," Journal of Comparative Economics, Elsevier, vol. 49(3), pages 693-714.
    15. Phan, Diep & Coxhead, Ian, 2010. "Inter-provincial migration and inequality during Vietnam's transition," Journal of Development Economics, Elsevier, vol. 91(1), pages 100-112, January.
    16. Kim, Yeonwoo & Padilla, Yolanda C. & Zhang, Anao & Oh, Sehun, 2018. "Young children's internalizing and externalizing behaviors after mothers exit welfare: Comparisons with children of non-welfare mothers," Children and Youth Services Review, Elsevier, vol. 86(C), pages 316-323.
    17. Daniel Haanwinckel & Rodrigo R Soares, 2021. "Workforce Composition, Productivity, and Labour Regulations in a Compensating Differentials Theory of Informality [Search with Multi-worker Firms]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(6), pages 2970-3010.
    18. repec:cte:werepe:7215 is not listed on IDEAS
    19. J. Edward Taylor, 1992. "Earnings and Mobility of Legal and Illegal Immigrant Workers in Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 889-896.
    20. Ingrid Kubin & Michael Steiner, 1991. "Labor Market Performance and Regional Types: A Conceptual Framework with Empirical Analysis of Austria," International Regional Science Review, , vol. 14(3), pages 275-298, December.
    21. Didier Balsan & Saïd Hanchane & Patrick Werquin, 1996. "Mobilité professionnelle initiale : éducation et expérience sur le marché du travail," Économie et Statistique, Programme National Persée, vol. 299(1), pages 91-106.
    22. Michele Battisti, 2013. "Reassessing Segmentation In The Labour Market: An Application For Italy 1995–2004," Bulletin of Economic Research, Wiley Blackwell, vol. 65, pages 38-55, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:40:y:2008:i:12:p:2933-2947. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.