Scandinavian Working Papers in Economics

Umeå Economic Studies,
Umeå University, Department of Economics

No 1048: Effects of Local Demand Shocks

Balder Bergström ()
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Balder Bergström: Department of Economics, Umeå University, Postal: Department of Economics, Umeå University, S 901 87 Umeå, Sweden

Abstract: This paper concerns the effects of labour demand shocks on the local labour market stemming from plant expansions. I use both a Two Stage Difference in Difference estimator and a Synthetic Difference in Difference estimator to find how a large plant expansion or opening affects the local labour market.

Keywords: Local Labour Markets; Job-Multipliers; Labor; Demand Shocks; Synthetic Difference in Difference

JEL-codes: J23; J31; J61; O25; R58

Language: English

71 pages, November 11, 2026

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