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 in a Changing World Order

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This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

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