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Local Multipliers, Mobility, and Agglomeration Economies
Author(s) -
Kazekami Sachiko
Publication year - 2017
Publication title -
industrial relations: a journal of economy and society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.61
H-Index - 57
eISSN - 1468-232X
pISSN - 0019-8676
DOI - 10.1111/irel.12183
Subject(s) - economies of agglomeration , economics , spillover effect , labor mobility , labour economics , economic geography , macroeconomics , microeconomics
This paper demonstrates that when one new job is generated by attracting a new business in the tradable sector in a local economy, a significant number of additional jobs are created in the nontradable sector when labor mobility is high. However, these multipliers disappear when labor mobility is low. This paper confirms that regions with higher labor inflow have larger multipliers. Furthermore, the spillover effect of agglomeration economies in the tradable sector is significantly positive on the nontradable sector.