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This paper estimates the effects of airport infrastructure on employment and the distribution of the labor force in US metropolitan areas. The analysis is based on models for the air network and for its effects on employment, which are estimated using US data. Air traffic is found to have a positive effect on the population of the local area, with an elasticity of 0.010, so airport improvements induce a reallocation of workers between regions. Air traffic is also found to have a positive effect on employment in the local area with an elasticity of 0.036 and a weakly positive effect on the employment rate in other places within 400 miles. Simulations suggest that for each job created in the local area by an airport expansion, two and a half jobs are created elsewhere in the United States due to the changes in the air network and the distribution of employment. Expanding the average airport adds one job in the United States for roughly each $78,000 invested. The results further suggest that the US air network is less centralized than would be optimal. [ABSTRACT FROM AUTHOR]

ABSTRACT In this paper, we examine the causal impact of enforceable covenants not to compete (CNCs) on labor market matching and the technological dynamism of regions. Exploiting the fact that the Michigan Antitrust Reform Act (MARA) of 1985 inadvertently repealed Michigan' s prohibition on CNC enforcement, we show that technical professionals in Michigan became increasingly likely to switch industry relative to similar workers in other U.S. states after prohibition. Workers switching industries after the introduction of MARA also earned lower wages, implying that they shifted into technical fields where their skills from previous employment were less productive. Estimates further show that the technological dynamism of Michigan declined in tandem, as fewer workers shifted into new types of jobs associated with recent technological advances. These findings are consistent with the view that skilled professionals that are subject to CNCs are more likely to leave their field of work postemployment to avoid lawsuits. [ABSTRACT FROM AUTHOR]

ABSTRACT This paper investigates the role of the business size distribution on income and employment growth in U.S. counties from 1990 to 2000. We measure the business size distribution as the share of employees across nine establishment size categories that range from microfirms (one to four employees) to large firms (1,000+ employees) and using three indices similar to a Gini coefficient. Results show that the business size distribution has a significant impact on county-level growth patterns. Employment shares in small firms increase employment growth, but decrease income growth. One possible conclusion suggests policies emphasizing small firms and entrepreneurship during times of high unemployment. [ABSTRACT FROM AUTHOR]

This paper examines the effects of knowledge about a wide variety of subjects on the wages and salaries of U.S. workers. Knowing a lot about topics such as medicine and dentistry, engineering and technology, and production and processing has a positive effect on individual earnings, whereas high knowledge in the areas of food production and personnel and human resources is not rewarded in the labor market. Spillover effects, where the share of metropolitan area employment in high-knowledge occupations enhances earnings, were uncovered primarily in subjects related to producer services and information technology. [ABSTRACT FROM AUTHOR]

Workers’ compensation reforms have been on the table in virtually every state over the last several years, and many states have launched comprehensive reforms. At least nine states undertook major reforms of their workers’ compensation systems in 2004 alone, and the reforms were driven largely by claims that higher workers’ compensation costs are driving away businesses and the employment that comes with them. This paper examines the relationship between workers’ compensation costs, as proxied by benefits/earnings, and employment across U.S. states and the District of Columbia from 1976 to 2000. Workers’ compensation costs are found to have a statistically significant negative impact on employment and wages, but the elasticities are very small, suggesting that workers’ compensation is not a likely cause of jobs woes in most states. Unemployment insurance appears to have an effect of similar magnitude. Medical cost inflation is found to be a significant factor in explaining movements in workers’ compensation costs over time. [ABSTRACT FROM AUTHOR]

This paper argues that the net economic impact of new firm locations or expansions is determined by a multitude of opposing forces. Using a unique database, I set out to evaluate the net effects of these opposing forces by looking at the net change in local employment and population arising from large (greater than 300 new jobs) firm locations or expansions in the State of Georgia. The analysis suggests that the employment multipliers associated with new firm locations are much less than one; that is, the net employment effect of a large firm opening is smaller than the gross employment impact. This result is consistent with other empirical economic impact studies, which find multipliers much smaller than those of typical input–output models, often less than unity, and a previous study showing little net effect of large plant openings. Expansions of existing establishments are shown to have substantial multiplicative effects, however, with an average employment multiplier of 2.0. I discuss possible reasons for differential impacts across new and expanding firms, focusing on the nature of the firms. Differences in net impact across industries and high-tech versus low-tech firms also is evaluated. I find that the impact of large firm locations or expansions on population in the resident county generally is negative, but positive for the broader region encompassing the county of location and its contiguous neighbors. [ABSTRACT FROM AUTHOR]

This paper examines the effects of state economic development incentives on the growth of 366 Ohio manufacturing and nonmanufacturing establishments that launched major expansions between 1993 and 1995. Growth is measured as the actual employment change that occurred in these establishments and as the employment growth announced when expansions were launched. Empirical findings indicate that incentives have very little (or even a negative) effect on actual growth and they have a substantial positive effect on announced growth. Findings also suggest that establishments that received incentives overestimated their announced employment targets more than establishments that did not receive incentives. [ABSTRACT FROM AUTHOR]