State-by-state variations in high-tech employment through the great recession

Abstract

This paper explores the relationship between state-level high-tech employment and state economic development, labor, and tax policies over the 2007–2012 period. During this period national high-tech manufacturing employment decreased, national high-tech service employment increased and the nation experienced a severe recession. Overall high-tech employment grew very little during this time period but changes in high-tech employment varied substantially from state-to-state. This paper asks why. A two-stage empirical model is developed and estimated. Among other things the results indicate that these policies did influence employment in the period although perhaps in unexpected ways.

Keywords:

• High-tech employment
• State economic development
• Great Recession