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Upjohn Institute working paper ; 20-335
In this paper, estimates are presented on short-run effects of demand shocks on a local labor market’s employment to population ratio (employment rate). Based on the estimates, commuting zones (CZs) better define a local labor market than counties, because both employment and employment rate effects exhibit large spillovers across counties within a CZ. In addition, the estimates suggest that demand shock effects vary, by an amount that is both statistically and substantively significant, with a CZ’s prior overall employment rate.
Upjohn project #34438
Smith Richardson Foundation
ECONOMIC DEVELOPMENT; Local labor markets
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Bartik, Timothy J. 2021. "Measuring Local Job Distress." Upjohn Institute Working Paper 20-335. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp20-335