Academic journal article Monthly Labor Review

Where the Jobs Are Now

Academic journal article Monthly Labor Review

Where the Jobs Are Now

Article excerpt

Density appears to be among the primary determinants of job clustering at the beginning of the 21st century, according to Gerald Carlino, in "From Centralization to Deconcentration: People and Jobs Spread Out" (Business Review, Federal Reserve Bank of Philadelphia, November/December 2000).

Three shifts, which have determined the distribution of jobs and people, have occurred since the end of World War II: 1) the shift from the frostbelt to the sunbelt; 2) the movement from central cities to suburbs; and 3) "the relatively faster growth of jobs and people in small and less dense metropolitan statistical areas (MSAs)." This last shift is what Carlino calls "deconcentration," and he has found that "jobs have grown less rapidly in MSAs where employment is dense ... [and] employment has spread out faster than population during the postwar period, suggesting that the proportion of the population that is employed grew faster in small and less dense MSAs than in the big and more dense MSAs."

As the denser areas come close to the carrying capacity of local resources, "adding jobs and people burdens existing support systems, leading to increases in the cost of living," such as when rents and housing prices around a major metropolitan area rise out of proportion to their actual value. …

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