Competition over High-income Workers: Job Growth and Access to Labour in Atlanta

Abstract

Access to a large labour pool (labour pooling) leads to local economic concentrations through agglomeration economies. However, these concentrations may be self-limiting by reducing labour availability through competition over high-skill workers. This paper examines whether labour pooling and labour availability of workers with different incomes account for local job growth in the Atlanta metropolitan area between 2000 and 2006. Workers’ income is employed to account for the human capital of workers, including education and skills. It is found that the availability of high-income workers is the only positive significant factor for job growth and the spatial size of the effect is larger than the traffic analysis zone (neighbourhood scale). In contrast, no labour pooling indicators show a positive association with job growth. The finding casts doubt on labour pooling effects at the intraregional level and suggests avenues for further research on local-area agglomeration economies.