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OECD Local Economic and Employment Development (LEED) Papers

The OECD Local Economic and Employment Development (LEED) Programme Papers present innovative ideas and practical examples on how to boost local development and job creation. A wide range of topics are addressed, such as employment and skills; entrepreneurship; the social economy and social innovation; culture; and local capacity building, among others. The series highlights in particular policies to support disadvantaged places and people, such as the low skilled, the unemployed, migrants, youth and seniors.

English, French

Local ability to rewire and socioeconomic performance

Evidence from US counties before and after the Great Recession

The paper examines the effects of three groups of factors (county economic structure, social/demographic attributes and geography) on employment growth and poverty change in US counties before and after the Great Recession. It finds that the industrial structure that facilitates inter-industry employee flows (“rewiring”) is of increasing importance post-Recession. In particular, this measure is associated with employment growth in under-performing counties suggesting that removing barriers to the flow of resources within lagging economies and increasing their adaptability potential might be a viable policy option.

English

Keywords: inter-industry employee flows, Great Recession, US, poverty change, local economic rewiring, employment growth
JEL: J62: Labor and Demographic Economics / Mobility, Unemployment, Vacancies, and Immigrant Workers / Job, Occupational, and Intergenerational Mobility; O18: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure; R11: Urban, Rural, Regional, Real Estate, and Transportation Economics / General Regional Economics / Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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