Working Paper: CEPR ID: DP12868
Authors: Maarten Goos; Jozef Konings; Marieke Vandeweyer
Abstract: Examining employment growth in local labor markets across Europe, this paper finds that each worker in a high-skilled occupation creates up to five extra jobs in less-skilled intensive services in the same region. However, it is also shown that there exist persistent differences in the size of this local high-tech job multiplier across regions. In particular, we find that the multiplier is larger in regions with high immigration, an abundance of less-skilled workers, and lower gross output per capita. At the country level we also show that this results in local high-tech job multipliers that are larger in Southern European countries than in the rest of Europe.
Keywords: local job multiplier; high-tech jobs; regional growth
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| High-tech job creation (O39) | Growth in non-stem jobs within low-tech sectors (O49) |
| Each worker in a high-skilled occupation (J44) | Additional jobs in less-skilled intensive services (L89) |
| High-tech job creation (O39) | Local high-tech job multiplier effect (O49) |
| High-tech job creation (O39) | Larger multipliers in southern European countries (O52) |