Local Employment Multipliers in Mexico Cities: contributions of manufacturing, tradable and creative employment

Abstract

This research estimates local employment multipliers for Mexican cities. To classify tradable and non-tradable sectors, the study employs both the traditional manufacturing/non-manufacturing classification and an alternative classification based on an employment concentration index that includes services. The findings indicate that manufacturing generates significant multipliers, at the upper bound of those estimated in other regions. However, the alternative classification yields much lower, and more reliable, multipliers. Additionally, the study reveals that creative and technological employment sectors produce larger multipliers compared to the average trade/manufacturing sector.