Discussion Paper No.1303

Abstract :
Employment multiplier effects in agglomeration economies and tradable service sectors that operate through increased demand for local goods and services are examined.
To distinguish different industry types, I use the population size correlation index and the Gini concentration index. Concentrated non-manufacturing industries, including tradable service sectors, in large commuting zones and innovation industries have large multipliers. Concentration, however, is not sufficient for large multipliers.
Dependence of an industry on population size is also important in the magnitudes of multipliers.

Keywords :local multipliers; labor demand; agglomeration economies; tradable service
JEL Codes: J23, R11, R12, R23