Are the most productive regions necessarily the most successful? Local effects of productivity growth on employment and earnings

Mark Partridge; Alexandra Tsvetkova; Michael Betz

doi:10.1111/jors.12499

journal article May 29, 2020

Are the most productive regions necessarily the most successful? Local effects of productivity growth on employment and earnings

Mark Partridge

Alexandra Tsvetkova

Michael Betz

Journal of Regional Science Vol. 61 No. 1 pp. 30-61 · Wiley

View at Publisher Save 10.1111/jors.12499

Abstract

AbstractEconomists typically celebrate productivity growth as the chief way to improve living standards. Productivity growth may reduce costs, improve quality, or lead to innovation and new products, but if demand is insufficiently elastic, productivity growth can lead to weakening of labor markets. We study county‐level effects of productivity growth and productivity levels on growth in employment, income, and earnings. The results suggest that productivity growth generally suppresses job growth but has boosting effects on earnings and, to a lesser degree, on per‐capita income, although there is considerable variation across geographies and specific outcomes.

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Metrics

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Citations

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References

Details

Published: May 29, 2020
Vol/Issue: 61(1)
Pages: 30-61
License: View

Authors

M

Mark Partridge

Department of Agricultural, Environmental and Development Economics The Ohio State University Columbus Ohio; Department of Human Sciences Jinan University Guangzhou China; Social Sciences Gran Sasso Science Institute L'Aquila Italy

A

Alexandra Tsvetkova

Spatial Productivity Lab at the OECD Trento Centre for Local Development Trento TN Italy

M

Michael Betz

Department of Agricultural, Environmental and Development Economics The Ohio State University Columbus Ohio

Cite This Article

Mark Partridge, Alexandra Tsvetkova, Michael Betz (2020). Are the most productive regions necessarily the most successful? Local effects of productivity growth on employment and earnings. Journal of Regional Science, 61(1), 30-61. https://doi.org/10.1111/jors.12499

Are the most productive regions necessarily the most successful? Local effects of productivity growth on employment and earnings

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