Alexander Whalley

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Space Race Technology and the Impact on Jobs in U.S. Cities

by Shawn Kantor, Alexander Whalleyvia IP2 Working Paper Series
Wednesday, December 13, 2017

The spatial concentration of productivity and employment is central to economic geography. Yet, how the location of frontier technology affects the location of jobs is not well studied. In this paper, we examine how the Space Race driven expansion of the high-tech sector affected labor demand in the manufacturing sector. We first use Compustat data from 1954 to 1997 to show that firms receiving Space Race contracts expanded employment, reduced labor intensity, and with little change in total factor productivity.