Using an econometric model system built on county level labor market data, this study allocates new employments in Virginia from 1990 to 2000 into various demographic segments: commuters, residents, and new immigrants. The study finds significant leakage of new employment opportunities in Virginia. 52% of new jobs created in the 1990s in a locality were taken by outside commuters. However, Virginia’s localities also benefit from spillover benefits from job creation elsewhere. Economists need to account for employment leakage and spillover to accurately evaluate the fiscal impacts of potential economic development projects.
© 2010 Palgrave Macmillan. Article first published online: JAN 2010. DOI: http://dx.doi.org/10.1016/10.1057/be.2009.38.
The definitive version is available at: http://www.palgrave-journals.com/be/journal/v45/n1/full/be200938a.html
Shuai, Xiaobing. "Who Benefits from Job Creation at County Level? An Analysis of Leakage and Spillover of New Employment Opportunities in Virginia." Business Economics 45, no. 1 (January 01, 2010): 38-48. doi:10.1057/be.2009.38.
Shuai, Xiaobing, "Who Benefits from Job Creation at County Level? An Analysis of Leakage and Spillover of New Employment Opportunities in Virginia" (2010). School of Professional and Continuing Studies Faculty Publications. 30.