Employment Decentralization in US Metropolitan Areas: Is Los Angeles an Outlier or the Norm?

Abstract

In this paper data from the economic censuses are utilized to show that most job growth in the manufacturing, wholesaling, retail, and service industries in the 1982–87 period has been in the urban peripheries of the twelve consolidated metropolitan statistical areas (CMSAs). Similar data for 1976, 1980, and 1986 from another source, the Wharton Urban Decentralization Project, confirm many of these trends, and for a larger set of metropolitan areas. The results show that Los Angeles is more in the middle of the twelve CMSAs than it is an outlier. It is suggested that these common results reflect a common process, that is, an initial movement of households towards the metropolitan edge in search of amenities (or flight from central city ills), followed by the decentralization of firms to increase their access to suburban labor pools.