Regional differences in labor demand in the United States

The authors "present estimates of the elasticity of demand for labor [in the United States] by region for the manufacturing sector....A brief theoretical framework for analyzing the demand for labor is presented.... This framework is used to develop a model that is well suited to analyze interregional differences in the elasticity of demand for labor....[It is] shown that there are significant differences between regions in both substitution and output elasticities. This finding implies that there are significant differences in the total elasticity of demand for labor across regions; therefore, error may be expected when national demand elasticities are used to estimate regional responses to wage and output changes."