Worker Earnings, Commuting, and Labor Force Participation in Minnesota Counties

Project summary:

Jobs are key to the success of individuals, families, and communities. When new jobs are created in a specific location they can be filled by residents who were not working, workers who commute in from elsewhere, residents who previously commuted to another location, or new residents. Who fills new jobs has important implications for local government services and revenue. However, the labor supply response is likely to differ depending on the earnings potential of the new jobs, as well as whether the location is rural or metropolitan. This research project analyzes county-level data on commuting linkages and labor supply responses, disaggregated by variations across Minnesota counties. Increasing our knowledge of these linkages and the differential impacts of labor market changes on lower income workers will contribute to a deeper understanding of economic challenges across the state and help inform local economic development policy.