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The Network of US Airports and its Effects on Employment

Author

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  • Nicholas Sheard
Abstract
This paper estimates the effects of airport infrastructure on employment and the distribution of the labor force in US metropolitan areas. The analysis is based on models for the air network and for its effects on employment, which are estimated using US data. Air traffic is found to have a positive effect on the population of the local area, with an elasticity of 0.010, so airport improvements induce a reallocation of workers between regions. Air traffic is also found to have a positive effect on employment in the local area with an elasticity of 0.036 and a weakly positive effect on the employment rate in other places within 400 miles. Simulations suggest that for each job created in the local area by an airport expansion, two and a half jobs are created elsewhere in the US due to the changes in the air network and the distribution of employment. Expanding the average airport adds one job in the US for roughly each $78,000 invested. The results further suggest that the US air network is less centralized than would be optimal.

Suggested Citation

  • Nicholas Sheard, 2020. "The Network of US Airports and its Effects on Employment," Centre of Policy Studies/IMPACT Centre Working Papers g-313, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:g-313
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    References listed on IDEAS

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    Cited by:

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    2. Tu Anh Trinh & Ducksu Seo & Unchong Kim & Thi Nhu Quynh Phan & Thi Hai Hang Nguyen, 2022. "Air Transport Centrality as a Driver of Sustainable Regional Growth: A Case of Vietnam," Sustainability, MDPI, vol. 14(15), pages 1-14, August.

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    More about this item

    Keywords

    Airport; Network; Transportation infrastructure; Urban growth;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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