Local multipliers and human capital in the United States and Sweden

We show that every time a local economy generates a new job by attracting a new business in the traded sector, a significant number of additional jobs are created in the non-traded sector. This multiplier effect is particularly large for jobs with high levels of human capital and for high-technology industries. These findings are important for local development policies, as they suggest that to increase local employment levels, municipalities should target high-technology employers with high levels of human capital.