Working Paper No. 914

Local Multipliers and Human Capital in the US and Sweden

Published: April 13, 2012Pages: 29Keywords: Local multipliers; Local labor markets; Labor demandJEL-codes: J23; R11; R12; R23

Local Multipliers and Human Capital in the US and Sweden Enrico Moretti and Per Thulin


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.

Interdisciplinary European Studies

The European Union and the Return of the Nation State

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This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

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