Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/309133 
Year of Publication: 
2024
Series/Report no.: 
Upjohn Institute Working Paper No. 24-407
Publisher: 
W.E. Upjohn Institute for Employment Research, Kalamazoo, MI
Abstract: 
This paper provides estimates that lead to better U.S. labor market definitions. Current U.S. labor market definitions-for example, metropolitan areas and commuting zones-are unsatisfactory because they are ad hoc and usually do not correspond to commonly used local planning areas. This paper proposes basing U.S. labor market definitions on how a job shock to a county affects nearby counties' employment rates. New estimates of county spillovers are presented. Using these estimated spillovers, new multicounty labor market definitions are based on maximizing a weighted sum of total spillovers captured, versus taking the average size of within-market effects. These new "spillover-defined local labor markets" (SLMs) correspond more closely to commonly used local planning areas, and they better capture spillovers and commuting flows without becoming excessively large.
Subjects: 
Local labor markets
commuting zones
metropolitan areas
JEL: 
R10
R12
R23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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