Wednesday 15 March 2017
14:15 – 16:00
Building 2, Room 3043 (Highfield campus, University of Southampton)
Free, registration required
Do local residents benefit from the growth of advanced sectors in their local economy? Policymakers invest considerable resources in attracting and developing advanced tradeables such as high-tech, digital or the creative industries. Yet there is little evidence about the impact of these advanced sectors on jobs and living standards for less-well educated residents. This paper addresses this gap by focusing on job creation, employment rates and wages in 182 UK local labour markets from 2009-2015. It shows that advanced sectors had a positive jobs multiplier, increasing employment rates for less-well educated workers. However, this was associated with a reduction in the average wage for less well educated workers. Tests show no crowding-out of other tradeable jobs, suggesting that the negative impact on wages comes from workers entering the labour market, but in relatively low wage personal service jobs. Moreover, there is considerable diversity in the effect between different advanced industries, with the largest multipliers coming from high-tech and digital economy industries.
Dr Neil Lee is an Assistant Professor of Economic Geography at the LSE. He is also Director of the MSc in Local Economic Development and the BSc in Geography with Economics.
This research supported by the Resolution Foundation. I am grateful to Stephen Clarke and Conor D’Arcy for excellent comments.
The Full Programme and further details can be found on the Eventbrite listing.
NOTE: Registrations will close at 10am GMT on 15th March 2017.