Labor Turnover and Employment Impacts in Regional Labor Markets

Abstract

Employment impacts, from a proposed solvent-refined coal plant, are examined by use of an adjustment model which departs from the more conventional export-base and input—output approaches. Adjustments in the regional labor-market are outlined through the use of a Markov-chain model of job vacancy transfers. Adjustments, in response to labor-demand shocks generated by the projects, are specified for disequilibrium gaps in the open labor market, with in-migration of workers absorbing job vacancies. Empirical estimates of key parameters are derived from previous studies of impacts in order to make a preliminary simulation of the system. Implications for an area in West Virginia designated as a regional labor-market are discussed.