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We show that every time a local economy generates a new job by attracting a new business in the traded sector, a significant number of additional jobs are created in the non-traded sector. This multiplier effect is particularly large for jobs with high levels of human capital and for high-technology industries. These findings are important for local development policies, as they suggest that to increase local employment levels, municipalities should target high-technology employers with high levels of human capital. Copyright 2013 The Author 2013. Published by Oxford University Press on behalf of Associazione ICC., Oxford University Press.

Local multipliers and human capital in the United States and Sweden