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Neighborhood Economic Development and Local Working: The Effect of Nearby Jobs on Where Residents Work

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  • Daniel Immergluck

Abstract

Decreased earnings and employment rates are not the only effects of job loss in lower-income urban neighborhoods. A reduction in the proportion of residents of a neighborhood who work near the neighborhood, or the “local working rate,” is another important effect to consider. Local working is likely to have positive impacts on quality of life and social capital, benefits that are not captured by earnings and employment rates. These impacts include decreased commuting and the development of information-rich local employment networks. Analysis of 1990 journey-to-work census data for the Chicago area shows that physical job proximity is found to be the principal determinant of local working. Also, the proportion of neighborhood residents who are black negatively and strongly affects the local working rate. A principal implication is that job-creating neighborhood economic development may have local working benefits. Black neighborhoods may have lower local working rates because of residents’ ability to obtain good jobs with large employers or in the public sector, and such jobs are not located near these neighborhoods. More research is needed to explain this phenomenon.

Suggested Citation

  • Daniel Immergluck, 1998. "Neighborhood Economic Development and Local Working: The Effect of Nearby Jobs on Where Residents Work," Economic Geography, Taylor & Francis Journals, vol. 74(2), pages 170-187, April.
    • Handle: RePEc:taf:recgxx:v:74:y:1998:i:2:p:170-187
    DOI: 10.1111/j.1944-8287.1998.tb00111.x
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    Citations

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    Cited by:

    1. Daniel Immergluck & Erin Mullen, 1998. "The Intrametropolitan Distribution of Economic Development Financing: An Analysis of SBA 504 Lending Patterns," Economic Development Quarterly, , vol. 12(4), pages 372-384, November.
    2. Chunil Kim & Choongik Choi, 2019. "Towards Sustainable Urban Spatial Structure: Does Decentralization Reduce Commuting Times?," Sustainability, MDPI, vol. 11(4), pages 1-28, February.
    3. Donald Houston, 2005. "Employability, Skills Mismatch and Spatial Mismatch in Metropolitan Labour Markets," Urban Studies, Urban Studies Journal Limited, vol. 42(2), pages 221-243, February.
    4. Rachel Weber & Susanne Schnell, 2003. "Contracting In: How a Business Intermediary Sought to Create Supplier Networks and Jobs in the Inner City," Economic Development Quarterly, , vol. 17(2), pages 148-164, May.
    5. Richard E. Kaglic & William A. Testa, 1999. "Slow work force growth: a challenge for the Midwest?," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 23(Q II), pages 31-46.
    6. Eva K Andersson & Bo Malmberg, 2015. "Contextual effects on educational attainment in individualised, scalable neighbourhoods: Differences across gender and social class," Urban Studies, Urban Studies Journal Limited, vol. 52(12), pages 2117-2133, September.
    7. Eva Andersson, 2004. "From Valley of Sadness to Hill of Happiness: The Significance of Surroundings for Socioeconomic Career," Urban Studies, Urban Studies Journal Limited, vol. 41(3), pages 641-659, March.
    8. Margaret Dewar, 2013. "Paying Employers to Hire Local Workers in Distressed Places," Economic Development Quarterly, , vol. 27(4), pages 284-300, November.
    9. Daniel Immergluck, 1998. "Job Proximity and the Urban Employment Problem: Do Suitable Nearby Jobs Improve Neighbourhood Employment Rates?: A Reply," Urban Studies, Urban Studies Journal Limited, vol. 35(12), pages 2359-2368, December.
    10. John Lennon & Michael J. Keane, 2006. "Delineating Daily Activity Spaces in Rural Areas," Working Papers 0617, Rural Economy and Development Programme,Teagasc.
    11. David A. Reingold, 1999. "Inner-City Firms and the Employment Problem of the Urban Poor: Are Poor People Really Excluded from Jobs Located in their Own Neighborhoods?," Economic Development Quarterly, , vol. 13(4), pages 291-306, November.
    12. Golde, Jacco van, 1999. "Spatial segmentation of large urban labour markets: cultures of segregation among the urban poor," ERSA conference papers ersa99pa026, European Regional Science Association.
    13. Michael J Keane & John Lennon, 2006. "Delineating Daily Activity Spaces in Rural Areas," ERSA conference papers ersa06p106, European Regional Science Association.

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