The Impact of Industrial Diversification on Employment Growth in the 50 US States: 2000-2013

摘要

Economic developers express concern for both employment growth and employment stability. This study asks whether there is a trade-off between the quantity and reliability of jobs. Does industrial diversification, presumed to lead to more reliable jobs, have an impact (perhaps negative) on overall job growth? Using data from the 50 U.S. states from 2000 to 2013, this study explores the relationships between employment growth and industrial diversification measured in four ways. The results are mixed, suggesting that overreliance on employment in stable industries might retard employment growth but that overreliance on employment in volatile industries does not have a clear positive or negative impact on employment growth.