Local high-tech job multipliers in Europe

Abstract

"Examining employment growth in local labor markets across Europe, this paper finds that each worker in a high‑skilled occupation creates up to five extra jobs in less‑skilled intensive services in the same region. However, it is also shown that there exist persistent differences in the size of this local high‑tech job multiplier across regions. In particular, we find that the multiplier is larger in regions with high immigration, an abundance of less‑skilled workers, and lower gross output per capita. At the country level we also show that this results in local high‑tech job multipliers that are larger in Southern European countries than in the rest of Europe."