The Effect of Occupational Structure on the Unemployment-Growth Relationship: A Study of Southeastern Metropolitan Areas

Urban growth as policy has been almost universally pursued in the United States during the 1970s. A major rationale in support of growth is the assertion that growth reduces unemployment. However, this assertion has recently been questioned. In particular, the literature suggests that the occupational structure of an area may influence the success of growth policies. This study examines the effect of occupational structure on the unemployment-growth relationship in Southeastern metropolitan areas. Regression analysis using the Expansion Method supports the expectation that the effects of growth on unemployment are mediated by the occupational structure in place within a metropolitan area.