Scandinavian Working Papers in Economics

Working Papers,
Swedish Entrepreneurship Forum

No 2012:13: Local Multipliers and Human Capital in the US and Sweden

Enrico Moretti () and Per Thulin ()
Additional contact information
Enrico Moretti: Berkeley and NBER
Per Thulin: Swedish Entrepreneurship Forum, Postal: Swedish Entrepreneurship Forum, Örebro University, SE-70182 ÖREBRO, Sweden

Abstract: We show that every time a local economy generates a new job by attracting a new business in the traded sector, a significant number of additional jobs are created in the non-traded sector. This multiplier effect is particularly large for jobs with high levels of human capital and for high tech industries. These findings are important for local development policies, as they suggest that in order to increase local employment levels, municipalities should target high tech employers with high levels of human capital.

Keywords: human capital; multipliers

JEL-codes: J23; R11; R12; R23

31 pages, August 17, 2012

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WP_13.pdf PDF-file

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